Nextel and Internet Telephony....
by: SmartWire (M/Chicago, IL)
10581 of 10581
>>My real concern - one that there has been almost no discussion - is the threat of Internet telephony. Everyone is working on wireless IP telephony. A breakthrough in the technology will be very important, and a threat to all wireless SPs. Nextel and MOT will be in the swim, but it will cost them all a great deal of revenue.>>
Al:
My take is that Internet Telephony is much more of a threat to the RBOCs and the BIG 3 - T, Sprint, MCI. Less so MCI because of Worldcom, however.
IP telephony is the bulldozer of price destruction on the long distance market. We are heading to flat/unlimited LD in less than 1 year.
Where does this put Nextel and the other wireless franchises. In the catbird seat. The profit spread is higher in wireless so the BIG money will HAVE to have a leg in a major wireless play soon to offset
the pricing blitzkrieg going on in the LD and local market.
Check out Teligent.... High Mhz microwave for local, LD AND internet access. These guys have a really nice model that goes higher than Craig's world right now - at least until Teledesic gets going.
IP telephony will make ALL digital wireless offerings that much more attractive - not only for distribution, but for the huge range of services and features that this technology will bring to Nextel's plate and the rest of the gang.
The private switched network is history. The entire world is going to IP (Internet Protocol)and the public internet will fuse - soon - with private extranet/virtual private networks. We have a fantastic
bandwidth explosion going on right now.
Chicago is the Bandwidth capital of the USA. By my reckoning, more dark fiber is being put down beneath this city that anywhere else in the country. Chicago is was the birthplace of cellular. It's where
Nextel first planted a stake. The bandwidth revolution is alive and well. Nextel's value will increase when the marketplace wakes up the fact that some company will have a huge arbitrage opportunity on
its hands:
1) Use Nextel's network - of customers - to package LD, ISP and other services (this is a HUGE distribution network that's being valued in negative figures by Wall Street right now....)
Wall Street doesn't get it.... They value Yahoo and Amazon and these EBays into the multibillions - FOR THEIR DISTRIBUTION NETWORK VALUE ALONE......THAT'S NAMES, CONTACTS,
NETWORKS, DISTRIBUTION......
Nextel has THE MOST LOYAL BAND OF CUSTOMERS IN THE HISTORY OF WIRELESS TECHNOLOGY......
They would gladly support other products and services if it meant their Nextel bill would be lower, discounted, etc.
Wall Street, when is some company going to grab Nextel and Arb Sprint, MCI and AT&T down to size???? Go with IP telephony. Go with Network marketing. Do whatever you have to do to leverage
the power of Nextel's 2+ million subscriber base.
There's trust out there just waiting to be mined. Wall Street is valuing Nextel as a dumb embattled digital wireless operator. It is really a network distribution play has more going for it than Yahoo,
Amazon and the rest combined.
Nextel....an internet play???? YES, YES, YES.
Wake up Wall Street. The IP world of networks is looking for names, distribution, trust. Go, go, go, go!!!
Feel free to call me so I can explain this more directly.
Relax Arnie, and Alvin.....
>>Jimmyooo.....the "YES, YES, YES and go, go, go, go" was just for YOU!>> |
