"Sure, but the max number of subscribers (read: revenues) is capped by Nextel's (relatively) outdated technology and narrow frequency band."
As was discussed recently, NXTL's max # of customers seems to be somewhere between 18-24 million. With a low (for NXTL) arpu of $60, that translates into sales between $13 billion to $17 billion. I suspect that will yield something north of $10 a share net income. Put a pe of your choosing on that. Seems to me that's a pretty nice cap. I'll take it. International is additional icing that will further sweeten the pot.
"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)."
That's gobbledegook. The same applies to T, Sprint et al.
"Fewer customers and fixed costs make Nextel a high cost producer - a bad omen in a highly competitive digital cellular market."
Hahahahaha. Fewer customers than what? NXTL never claimed that it was going to be the T of wireless. But it's future sales and lower fixed costs will make it the winner most on this board believe it will be. You don't really believe this stuff you've been writing, do you? Do you work for Mad Magazine? Or perhaps Saturday Nite Live?
"Technology may or may not matter for Nextel's subscribers, BUT IT DOES MATTER TO NEXTEL'S SHAREHOLDERS."
Again, something we can agree on. NXTL's shareholders are extremely happy with iDEN and the results it's bringing to NXTL.
Arnie
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