NEXTEL Message Board - Msg: 3105299

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Technology Stocks : NEXTEL

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To: John F. Dowd who wrote (3961)	1/6/1998 2:50:00 PM
From: George Weiss	Read Replies (1) of 10227

John, you wrote. "You are absolutely correct. It is the final fit. The satellite T1 becomes the long distance interconnect for NXTL. On the other hand the web could do this as well all NXTL needs are nodes that tie in to the net a critical junctions through out their universe of subscribers. The beauty of NXTL as I have always understood it is that it is all digital." I must not understand the economics of this, or the approptiate use of this technology. Nextel now uses MCI as their domestic/intl. LD carrier and charges users a flat 15CPM for domestic calls. They probably pay MCI a wholesale rate of 5-7CPM. To use Teledesic doesn't seem economically feasible? I could see some synergy in having an dual iDEN/LEOS phone so it could be taken anywhere in the world, but still don't see the synergies yet. Tom mentioned the use of Teledesic for high capacity access to the Internet for business. That would seem to be where they would have potential and I am certain there are many other applications as well. Small satellite dishes for home/office applications have also been talked about. But, how will Teledesic price these services to be competitive with AOL, and landline? George

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