John, I think that NXTL's plan is to create a need for direct connect in future customers' minds and that's what NXTL's radio advertising is all about. At the present folks don't know that they "need" direct connect. Once they see the benefits, they'll pop for the service. And what are those benefits? Speed of communication, efficient use of their time, maximmum profit potential per employee, in short, increased productivity. Remember, NXTL's market is mobile work groups. That's a wide swath across industry groups and you can bet your bippy that 10-20% of those folks could and will eventually benefit from direct connect. With 64 million U.S. workers in mobile work groups, that's a big market indeed. Add a pinch of the commodity business, a smidgen of the parent-to-kid walkie talkie biz mentioned by NXTL last week, flavor it with the international opportunity and you've got a business that goes beyond $100 per share and arpu that will satisfy the most sceptical investor.
Arnie |
