Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (113699)	2/19/2002 5:21:27 PM
From: slacker711	Read Replies (2) \| Respond to of 152472

Sprint churn rate is at 3.0%; AT&T's at 2.7% and Cingular's at 2.9%. how do you explain the difference? I have no doubt that adding credit challenged people is going to raise the churn rate. The fact that they have cash doesnt seem to help them always pay bills on time. The NPV of the "Clear Pay" customers includes churn. If the number is positive, PCS should still go after them....regardless of the effect on churn. yes, Sprint ARPU is twice as high as European ARPUs. but that's because the Sprint customer quality has only started to deteriorate--Euro operators already dealing with 70% market penetration. To a certain extent you are right....but the dirty little secret of European "superiority" in wireless is their Minutes of Use. I tried to find good estimates for this number a while back.....the best I could find was something like an average of 3 minutes a day in the UK. Since this they have CPP, you can probably double that....a total of 180 minutes a month. I will try and find some real documentation for the European operators....but everything I have seen indicates that they are much lower than Sprint. In any case, I have seen hard numbers for MOU's for other operators around the world....they are all well below Sprint (including Korea and Japan). I think the differences in ARPU can be explained by the MOU's. Sprint added 4 million subs in 2001 and AWE added 1.9 M. but this year, Sprint is projected to add 3.0 M and AWE 2.5 M. american consumers are voicing their opinion and we need to respect their choice. that is the majesty of free market system! What Sprint did was take their number of net additions down from 22 million to 17 million. They maintained their belief that they will manage to get around 20% of the total gross additions in the industry. Obviously, AWE has a different idea of what the year is going to look like. If you want to talk about horrendous growth....look at Cingular. If they dont do something soon, they are going to end up reporting negative sequential revenue growth in the wireless division. Slacker