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Technology Stocks : Leap Wireless International (LWIN) -- Ignore unavailable to you. Want to Upgrade?

To: Pierre who wrote (1772)	3/18/2002 2:54:59 PM
From: pcstel	Respond to of 2737

Pierre: As I recall you concluded that they could not compete on a cost basis ... or maybe it was they wouldn't compete because it cannibalized their high revenue wireless too extensively. Would you mind once again addressing that issue? AWE is committing suicide if they follow this approach! First of all.. It appears that AWE does not understand the "Wireline Replacement Market". Cricket is an excellent example! Cricket is celebrating it's 3 year anniversary this week. Yet, in 3 years offering flat rate voice services, they have only accomplished a 7% wireline replacement penetration. I think AWE would agree that $33 a month for all you can talk is wireline replacement territory! Yet, the migration has not happened! Why? The answer is Data! Until you can provide a wireless "real life" all you can eat replacement for wireline data services, that is priced in a competitive format. You are simply not going to displace the wireline market. LWIN and other CDMA carriers have the networks already capable of providing these services with minimal additional CapEx required. AWE's upgrade to GSM/GPRS still leves them one level of network evolution away from the ability to provide these data services! Simply put, AWE will simply cannibalize their existing ARPU by downgrading existing subscribers onto a lower "Flat Rate" service package! PCSTEL