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Technology Stocks : NEXTEL

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To: Arnie Doolittle who wrote (3595)12/10/1997 5:37:00 PM
From: P.T.Burnem  Read Replies (1) of 10227
 
Since you have a background in wireless telecomm, perhaps you can tell me how a non-competitive company (NXTL) can have an arpu of $70 vs. an industry average of $45 and at the same time add more customers last quarter than any other wireless player, including AT&T & Sprint PCS.

Digital wireless is superior to AMPS, and Nextel was first to offer it.


Perhaps a better question to ask is how Sprint PCS, a company offering a commodity sevice at commodity prices, will be able to compete with NXTL, a company offering a unique service.


AFAIK, out of four services offered by Nextel, only one (dispatch) is really unique. The other three will have to compete head-to-head with the PCS. For heavy phone users, it may be more economical to use a regular PCS handset for voice/paging and a separate DMR unit for dispatch.

PTB

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