Archer,
Excepts from you post: "major long-term limitations.. only have about half the bandwidth of cellular/PCS providers, use a specialized type of equipment made only by Motorola, and use a technology with less capacity than the more common GSM/CDMA/TDMA...Unfortunatly, Nextel will have the highest cost structure in the industry due to the factors stated above".
Please help me. I'm not so sure that you are correct. Nextel operates at a lower frequency, one whose signals carry greater distances the PCS. So, Nextel needs fewer towers to cover a greater area. Thus, infrastructure costs are LOWER. Like analog cellular, greater frequency reuse can be created by adding towers and splitting cells, thus increasing useful bandwidth. So which is cheaper?
Also, you must consider prices paid for the existing bandwidth. AT&T and Sprint each paid $2.5B for PCS spectrum. McCaw paid $3B for spectrum + infrastructure.
Help sell me on the fact that Nextel's cost structure is actually higher than other wireless carriers. And also remember, the best technology doesn't always win. |
