NEXTEL Message Board - Msg: 2989762

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Technology Stocks : NEXTEL

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To: Mike V. who wrote (3750)	12/17/1997 2:37:00 PM
From: P.T.Burnem	Read Replies (3) of 10227

Businesses and consumers buy FEATURES, BECAUSE FEATURES PROVIDE BENIFITS. Sure, but the max number of subscribers (read: revenues) is capped by Nextel's (relatively) outdated technology and narrow frequency band. On the other hand, Nextel's capital expenditures and maintenance costs are either fixed (backoffice operations) or driven by the area of coverage (cellular towers, tranceivers). Fewer customers and fixed costs make Nextel a high cost producer - a bad omen in a highly competitive digital cellular market. Technology may or may not matter for Nextel's subscribers, BUT IT DOES MATTER TO NEXTEL'S SHAREHOLDERS. PTB

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