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

To: Dave who wrote (2159)	6/10/2002 1:42:45 AM
From: Maurice Winn	Respond to of 2737

Dave you missed the main point <What if our system was more successfull than we originally anticipated? The "system" would quickly be over-loaded, voice quality would suck, many dropped calls, etc. It would be very difficult to quickly deploy additional base stations and other infrastructure. > If the system is highly successful, we'd be charging $10 a minute at peak times and we'd find that it still wouldn't be overloaded. Or, if really dramatic, we might have to charge $100 a minute for an hour or so if something like the WTC attack happened in the area. That's how we would avoid overloading, busy signals, dropped calls and reduced call quality. That way, everyone who wants to could get through. Since their accounts would be prepaid, they couldn't run up debts which they wouldn't pay. They'd be switched off when their money runs out - they could add more money on-line [leave their phone connected only for money transfer to their account]. Of course the price wouldn't normally get to more than $1 a minute because people would keep calls brief and defer chatting-type calls until free-calling times. The profits would pay for expanded capacity and coverage. The network would therefore be much more robust, provide better service and get more and more customers. I don't think the software would be very difficult. The main issue would be managing customer relations with people who wanted to argue as to whether their phone display was $1 a minute or $0.10 per minute and how long they talked. The average price per minute would be lower than any other service, including Leap's 1100 minutes per month for $30 = 3c a minute. Our price would average about 1c a minute, with no busy signals, high quality voice even when very busy, few dropped calls, reduced cell shrinkage [breathing as they call it] since loadings would be more constant, better coverage. People would love it. Average bills of $10 a month [for 1000 minutes] would be attractive because our network would run at an average of 80% capacity instead of 20% or so. Long distance, answerphone, caller display, call waiting, data and other services would be extra [some would be just part of the service]. Mqurice