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

To: Dave who wrote (2304)	6/30/2002 3:14:48 PM
From: Art Bechhoefer	Read Replies (2) \| Respond to of 2737

The 40 markets are built out, as far as base stations go. But they still have promotional costs to get more customers. That means subsidizing the cost of handsets, carrying advertising in the papers and on TV, etc. They would have some additional capex moving from CDMAOne to CDMA2000 and high speed data access facilities. But from what I can determine, there would only be minor upgrades needed for the moment. Note that providing data communications is a value added service that increases average monthly revenues from users at very little extra cost. Note also that the unlimited local calling generally spreads usage away from peak times, making a given set of base stations more economical from the operating point of view than occurs with competitors that charge more for peak usage. Finally, note the prepaid long distance calling policy, where the user deposits money in advance for calls priced at a flat 8 cents per minute rate. Taken together, these pricing policies create a more efficient operation than those for competitors. Art Art