Mike,
Nextel is in the build-out stage. So, with the limited traffic capacity, they're wisely pulling the high ARPU subscribers first. They're using their "gimmick" (not my word) DC to do it.
It makes sense. If they opened up to consumers, they might have a lot more subscriber growth, but they'd have even more system problems than now. And they would not have turned cash flow positive. That's because the ARPU would be much lower, churn would be higher (because of lack of consumer loyalty), and expenses would be higher (it now cost about $450 to aquire a customer).
They made the right decision. Later, when the ducks are in order, would be a better time to go after Mom and Pop.
Comments?
Rob |
