Jim: Good questions. :-) T's Digital One Rate strategy, which went into effect around last April or May, has worked well for them, considering where they were at, and where they were going. It doesn't compare with, or hurt N's growth plan, which is toward the high-end market. T's adds are both analog and digital while N is only (efficient & secure) digital. N's ARPU is significantly higher than T's, and in fact is the highest in the wireless industry. T rounds up to the next minute, N charges by the exact time used (seconds). I could continue with N vs. T, but let me highlight two of the major differences between N and ALL the other wireless companies:
1. Direct Connect. No one else has it and it is likely they will not have something comparable for several more years. And when they finally do have something available, it will take them additional years to successfully market.
2. Business Networks. Indispensable for customers, and only available with N. This network will be expanded horizontally and will encompass larger and larger areas (DC).
There are many more distinguishable advantages N has over its competitors, not the least of which is Craig McCaw's vision and smarts in this industry, and the outstanding mgmt he has put in place.
Regarding your question on customers who don't need DC, we don't target them. The ordinary (non-business) consumer can go to any of the "others" who have nothing to differentiate themselves from each other, except to cut-throat each other on their pricing plans.
BerniE
NEXTEL x,xxx
p.s., Also an investor (long) and lurker on "Strictly Drilling". :-) |
