CellularVision (CVUS): 2-way LMDS wireless cable. Message Board

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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable.

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To: Elliot W who wrote (1073)	2/10/1998 8:36:00 AM
From: James Fink	Read Replies (1) of 2063

Elliot, Take a look at the Bellcore study of LMDS. It states that LMDS will not be profitable if it focuses on plain old telephone service ("POTS"). The United States has such an extensive universal service system that virtually everyone who wants telephone service has it at cheap prices. LMDS cannot add much value to POTS. The real value of LMDS is high-speed internet and data transmission. Businesses have a great need for high-speed data; residential consumers do not. Sure, everyone would like higher-speed internet than 33.6 kbps, but are they willing to pay for it? Studies show that most people are NOT willing to pay the 50-60 dollars a month it requires, especially if they already get it at work. The Bellcore study also concludes that LMDS will be most profitable if many services are bundled together. Again, businesses are more likely to pay for an expensive bundle of many services. Will LMDS licensees market their high-speed services to residential consumers? Yes, but they will not be the primary focus because they will not be the primary revenue generators.

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