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Technology Stocks : NEXTEL -- Ignore unavailable to you. Want to Upgrade?

To: Satellite Mike who wrote (7978)	10/15/1998 7:34:00 PM
From: Rob Prickett	Read Replies (1) \| Respond to of 10227

Mike, Nextel is in the build-out stage. So, with the limited traffic capacity, they're wisely pulling the high ARPU subscribers first. They're using their "gimmick" (not my word) DC to do it. It makes sense. If they opened up to consumers, they might have a lot more subscriber growth, but they'd have even more system problems than now. And they would not have turned cash flow positive. That's because the ARPU would be much lower, churn would be higher (because of lack of consumer loyalty), and expenses would be higher (it now cost about $450 to aquire a customer). They made the right decision. Later, when the ducks are in order, would be a better time to go after Mom and Pop. Comments? Rob

To: Satellite Mike who wrote (7978)	10/15/1998 10:48:00 PM
From: Frederick Smart	Respond to of 10227

Mike: >> The capacity and ability of NEXTEL to create hugh revenues is just mind-boggling, but management has not really targeted the masses--they have 275 million POPS, but they're really targeting about 10, 15 million. Maybe it has something to do with Craig McCaw being AT&T's largest shareholder.>> I see a huge market myself. Come to Chicago and will show you example after example after example. I have a lot of faith in Craig's vision. I know how it can look very cloudy to a lot of people, but I humbly think it is time to buy more. I am using Nextel as a "street portal" of the Internet. It's our way of getting people information that's on the internet into people's hands more quickly. I can't wait for MOT's new software language that will allow any cellphone user to access the Internet via audio voice and have the content of webpages read back to us. All this requires one to completely rewire one's brain. Very different.