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Technology Stocks : NEXTEL
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To: John F. Dowd who wrote (4099)1/12/1998 3:50:00 PM
From: Arnie Doolittle  Read Replies (2) of 10227
 
" "Average daily subscriber gains increased approximately 19 percent
despite the fact that there were approximately 16 percent fewer useful
business days during the fourth quarter."

Arnie I thought the last report said the avg. per sub. was abone $70???"

John, Nextel is referring to the average daily number of new subscribers added, not the revenue each generated per month. As in cost accounting, there's two components to the equasion: quantity and price. 19% is about quantity.

As for price, since NXTL lost 10 sales days in the 4th qtr., is it any surprise that arpu declined from 70 to 68? It's hard to get arpu up when customers are on the ski slopes. Look for arpu to bounce back in the first quarter.

And why did NXTL lose 10 sales days? Customers were either closed, out of capital expenditure budget or the decision makers were on vacation.

Arnie
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