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Technology Stocks : NEXTEL
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To: Rono who wrote (7934)10/15/1998 12:10:00 PM
From: P.T.Burnem  Read Replies (2) of 10227
 
But I don't understand how an increase in ARPU can be ignored.

An increase in ARPU along with a slowdown in subscriber growth points to Nextel's failure to attract regular cellphone customers. The Nextel's business plan is largely based on an assumption that their subscribers will use both voice and SMR services. This is not happening.

Having stuck with maintaining a nationwide infrastructure, Nextel can't survive on their digital SMR offering alone. A second-generation digital SMR (900MHz) will put them out of their misery.

As far as I am concerned, Nextel is headed toward oblivion.

PTB
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