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

To: i-node who wrote (373)	11/22/2002 3:44:13 PM
From: pcstel	Read Replies (1) \| Respond to of 3386

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. Well, if they made those statements earlier this year, then they are for a time period of less than 1 year, probably on a monthly basis. 97% retention rate equals 3% Churn. If you only retain 97% of your customers each month. Then over the course of a year you would turn over ~30% of your customer base. Again, they are not providing you with these exact metrics, which should be a concern, since these metrics are seen as almost a requirement in a subscriber model business. 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. I don't know if I would consider them a non-starter. I would say they are a point of concern! But, that is just my opinion. "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." Cash Burn is too high! Good Luck on the 200 million in funding! Best Regards, PCSTEL