NEXTEL Message Board - Msg: 2968888

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Technology Stocks : NEXTEL

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To: Bubba who wrote (3709)	12/15/1997 1:03:00 PM
From: P.T.Burnem	Read Replies (3) of 10227

Ask not, "Why are these idiots paying $70 ARPU?" Nextel subscribers are not idiots (though the jury is still out on Nextel stockholders:). They pay up because a) they want SMR and b) they feel Nextel gives them the best deal. Te $70 arpu is often offered here as proof that Nextel somehow owns the high end of the (digital) cellular market and therefore ought to be valued higher than other cellular providers. Nothing can be farther from the truth. In fact, the $70 arpu is only marginally higher that the Nextel's lowest-priced ($69) "integrated" plan, which to me indicates that 90% of Nextel digital customers who are Direct Connect subscribers don't care about Nextel's digital cellular, nationwide footprint, etc. They pay $39/mo for the digital cellular because they have to. The bottome line is: Nextel is a SMR provider and ought not be valued as or even compared to (digital) cellular ones. PTB

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