John:
I believe you have given the best explanation to date for the loss of momentum in nextel. With the huge amount of debt hanging around nextels neck, it is imperative that the growth continues at the past rates. With the increased competition, and incentives required to maintain market share, the same percentages in revenue growth come into question. Until, there is a resolution to this question, there is going to be weakness in the stock.
From my own personal experience, our monthly bills have declined by 50% since changing to there new pricing plan. The same can be said of there service. I do not know what the reason for the decline in service is, but believe me when I tell you it is palpable.
As a result of the competition and the complaints about service, I know several companies that have decided not to use nextel and opted for other providers. Direct connect is good if you can get through and finish a sentence. Lately, it has been difficult to get through and to maintain contact for any length of time. People who call me on cells are not having the same problem.
Ken |
