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

To: pcstel who wrote (1928)	4/24/2002 3:31:22 PM
From: arun gera	Read Replies (1) \| Respond to of 2737

>Like you said. That's a BIG MISS! I believe the adage goes. "Houston, we have a probelm!" And it's a pretty fundamental problem that lies in their distribution model.> Agree. >Well, I guess we know why the equipment costs are so high. After all, last quarter was $180 in subsidy for a $110 phone. Now it's over $200. Equipment subsidies should be going down! Not up Q/Q!> We found out that a little late. Or maybe just in time. That number always seemed weird. And so did the revenue/average customer, that did not match the ARPU. >As the saying goes. Their counting their pennies, while the dollars flow out the door. How do you fix this? Their entire business model is designed on this distribution model! This is not sporadic fraud. This is systemic fraud!> Cable companies live with similar kind of fraud to some extent. The management has to get the fraud under control before they convince the serious investors. There were some shorts talking about fraud a few months ago on the yahoo board. And I had noticed a post on alt.phreaking on the Usenet that indicated a typical modus operandi: From: Fletch (poppinfresh@qwest.net) Subject: Cricket Communications... Newsgroups: alt.phreaking View: (This is the only article in this thread) \| Original Format Date: 2002-03-21 17:19:48 PST BLEH Let me just add that this new Cricket Communications is like wireless for kiddies. For those of you who arent familiar or dont have it available in your area its simple: 40 bux a month or so for unlimited local phone calls. Well the service area to bluntly put it sux, and in my area, (Denver,CO), we are FLOODED with retailers and corner stores selling phones. Well I recently purchased one of these phones at a local asian market that was the equivalent to a nomadic shop in egypt being pulled by camels, and of course didnt show any ID or w/e. The next day I registered the phone under some false name, address, SSN, etc and sure enough one month later the phone shut off. (took them that long to find out that the shit was fake - meaning no bg checks, etc) And while they use only a measely Nokia 5100 series phone, Im sure there is a way to reprogram the phones with new phone numbers. To confirm this, this morning I got up and took my phone (fakely registered one) and got it reactivated with a new number, under a new name and everything! Now, I have checked alot of notorious wireless phreaking sites and have come up with kaput. Wondering if there was anything you guys might have come across of know of?? If so, im confident I could keep an low pro w/ the wireless, keep the same numbers in the phone, and just switch the ESN, and number, under a new name every month. This could prove effective in use with wireless phreaking, at least in my area. THX in advance guys. =P Arun

To: pcstel who wrote (1928)	4/24/2002 3:43:46 PM
From: arun gera	Respond to of 2737

>Their entire business model is designed on this distribution model! This is not sporadic fraud. This is systemic fraud! This is a BIG PROBELM!!> It definitely is a big problem. But is the fraud likely to remain in some range? The impact of gross adds wil decrease as the subscriber base grows. My analysis is that the CPGA was important for this year and not as critical next year. The problem is that the fraud is hitting at least two line items - Average revenue and the Cost of Equipment. The average customer numbers also become suspect. Arun

To: pcstel who wrote (1928)	4/24/2002 8:20:22 PM
From: arun gera	Read Replies (1) \| Respond to of 2737

Discussion related to LWIN on another thread. Message 17379078

To: pcstel who wrote (1928)	4/28/2002 4:58:54 PM
From: pcstel	Read Replies (1) \| Respond to of 2737

Leap Requests Amendment to E911 Waiver E911 Phase2 request! Network implementation Lucent - Complete Nortel - Sept. 30, 2002 Ericsson - Sept. 30, 2002 Handset Implementation Leap introduces ALI handsets, June 30, 2002 25% New Activations - June 30, 2003 50% New Activations - October 30, 2003 100% New Activation - March 31, 2004. This will (if granted) allow LWIN to sell the cheaper 1X Voice Only (non-GPSOne) phone like the KYO-1135 to AT LEAST 50% of it's New Activation Base until March 31, 2004 gullfoss2.fcc.gov PCSTEL