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

To: pcstel who wrote (1877)	4/6/2002 8:58:26 AM
From: arun gera	Read Replies (1) \| Respond to of 2737

PCSTEL: Direct attack by Adelphia on the Pittsburgh market. Adelphia has several advantages (more so with their exsiting cable customers): 1. Lower rates than Leap for existing Cable customers 2. Existing database of customers with inexpensive promotion costs (Bill inserts) 3. Wider coverage area (albiet with lots of gaps) 4. Ability to raise money 5. Cheaper backhaul costs 6. Starts out with lower CPGA. So Cable companies attack Leap. What is the next round? Leap attacks Cable companies with fixed-line or mobile 1xEVDO? Leap started with an attack on voice ILECs. Why not challenge the Cable companies next? David taking on two Goliaths. Leap could split its spectrum in each market: a) Cricket - Unlimited voice with limited data apps. b) Leap Data Services - All-you-can eat Data with Voice-Over-IP calling. If Leap's (and Adelphia/MetroPCS) customers are dropping their landline phones, are we seeing that in the ILEC's residential subscriber numbers? How badly does it hurt the ILECs if they lose 5-10 percent of their residential customers? Arun

To: pcstel who wrote (1877)	4/6/2002 9:58:07 AM
From: arun gera	Read Replies (1) \| Respond to of 2737

Differentiation As more commodity all-you-can-eat voice companies encroach on Leap's coverage areas, Leap will have to differentiate its service. Woody_charlieblack on the Yahoo board keeps pointing out that - Leap's lack of a flexible billing system puts it at a great disadvantage in comparison to Sprint PCS and Verizon. I am less worried about the billing system, and more with Leap's abilities to deliver premium services that are affordable to its subscribers without increasing Leap's CPGA costs. Would premium services take away Leap's simplicity in pitching to customers? Would specialized handsets increase the need for customer service? Remember that customer service costs were a huge portion ($9-10/$31) of Q4 2001 CCU. Recent introduction of 1x phones in Phoenix seems to indicate that it is not necessary that subsidies are any higher on premium phones. Sue mentioned that the Kyocera blue-screen phone was selling well at about $120. Arun