Annual Meeting (AM) Part 1 of ?
I can't begin to tell you how tedious it is to transcribe a two hour meeting from a practically inaudible tape. However, it was worthwhile because it is hard to write and understand all that is being said at a meeting, you miss a lot. Rob did a great job a few posts back. The advantage of several of us writing is that we get a full and accurate accounting of what was stated, and we can question each other if we heard something a little different. Please correct or challenge anything that differs from your understanding of the AM or your knowledge about the Nextel operation.
Arnie said he will summarize and post as he did last year.
Fact Sheet - dated April 1998 (partial)
Subscribers: Digital 1,641,500 Analog: 493,600
National Reach: currently 400 cities nationwide
International Reach: wireless operations and investments in Canada, Mexico, Brazil, the Philippines, Argentina, Peru, Japan and Shanghai
Total Employees: as of 3/31/98 - approximately 8,000
Akerson very upbeat (as well he should be) about his mgmt team. Talked about growth of technology to now 30% of national economic growth. Talked about role and importance of Nextel, as an application of technology, as an important tool in their business and personal lives.
How do we intend to grow? Not only new markets, longer battery life, better products, business practices, etc., but also:
1. Intro next year of a new Data product- First high speed active data wireless product in market. Telephone companies now mostly 28 Kilobites. Nextel will have, over time 33-45 Kilobite capacity.
2. Business Networks. From 100K units in last 4 months on 120 specialized networks (real estate, medical) to present 300K with higher ARPU and much lower churn rate.
3. New Products. Motorola new phone, introduced January. First industry 2-line wireless phone with many other new features.
4. Global/International Aspirations. Largest opportunities in emerging markets - countries with high state of development is focus of our efforts. Teledensity factor for growth and opportunity. Our three engines of growth are Brazil, Argentina and Mexico. All three will be up and running this year (early summer to late fall).
5. Nextel International. Includes 12 of world's 25 largest cities (433 million POP's). We look for undervalued spectrum. Currently, operational activities in eight countries outside the US (177 million POP's). That's more than our competitors have in the US. Example given: Sao Paula (Brazil) has 3 million people waiting for wireline services, and 500K to 700K waiting for wireless. Bribes of from $3K-$5K in the black market being paid for early-to-receive slots. We already ordered second switch to meet pent-up demand. Expect very high ARPU ($100?).
More....
Bernie |
