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Technology Stocks : XM Satellite Radio Holdings Inc. (XMSR) -- Ignore unavailable to you. Want to Upgrade?

To: pcstel who wrote (372)	11/22/2002 2:22:16 PM
From: i-node	Read Replies (1) \| Respond to of 3386

CHURN is simply customer turn over. Deactivations! The company has made some statements concerning deactivations -- my recollection is that they provided a simple percentage as of earlier this year and the retention rate was in the 97% range; this, of course, must be determined over time. There is little question that customer retention is extremely high. Frankly, it is inconceivable to me that I would be without this service in the future. It is that good. What we're dealing with now is HOW MANY radios we're willing to pay for -- one for each car plus the house? The notion of these extremely high per-subscriber costs is sort of a non-starter. While it is a fact that the costs are real, the time frame during which they are to be paid is another matter. Also, when I talked about "startup costs", I wasn't referring to the accounting treatment, but rather, a known, predictable cost that should be a surprise to no one. The important point is the company is precisely where they projected they would be at this time -- both in accumulated operating deficit and in subscriber levels. There is little question that cash flow break even will happen by the end of '04, at which time the company will begin generating a ton of cash.