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

To: i-node who wrote (574)	4/25/2003 11:08:55 AM
From: pcstel	Read Replies (1) \| Respond to of 3386

Honestly, I'm not looking at other "subsidized subscriber models"; I just don't see where there is a pertinent comparison. Well, I guess that explains our differences in opinion? I prefer to use previous examples as my basis of opinion.. You seem to prefer the "This one is going to be different than all the rest" concept. Don't get me wrong. You could be correct! But, again, the radio subsidy is only a portion of the CPGA figure.. And to be quite honest.. A $430 dollars CPGA with $10 in ARPU shows this one has a "long way to go". I find it much more reasonable to look at it from a different point of view. WHY WOULD XM SUBSIDIZE MANUFACTURERS INTO THE FUTURE? Maybe they won't?? Who knows.. But, again.. Subsidies are only a portion of CPGA. Delphi has made it clear that the SKY FI has become a bright spot in their product line and profitable for them. LOL!! OK if you say so... I have seen not evidence of such "financial metrics" for a given device... Have You? Fair enough -- you said they were never going away. But excuse me if I don't reread posts which are six months old. Well, I guess that is the difference between you and I. I don't "interpret" from memory. The thread is not that long, so it only takes a few moments to make sure your Facts are correct.. Of course, it's easier to try and make "wild claims" rather than "verifing" your data points that you post. It is becoming a bit of a habit. "ut let's not split hairs -- the question is whether subsidies will come down enough that they are insignficant." Again, I have never seen a subscriber model where subsidies disappear. Maybe XM is different. But, we will leave that one for the History Books... For right now, I'll stick with modern literature for reference. But, again, subsidies are only a portion of CPGA costs. 10 years from now, XM will be in a position to charge manufacturers to license its technology. In 10 years.. Cars will come from the factory with DirecTV. All this is speculative. But I refuse to follow blindly the notion that XM is just like every subscriber business And you are free to be as speculative as you want.. I'll stick to modern financial models. Regards, PCSTEL