Network Pricing

You’ve no doubt seen Sprint’s bid to combine with Nextel – in a transaction purported to exceed $36 billion. Nextel, if I’m not mistaken, has about 15M subscribers.

So doing some basic math, Sprint would be paying ~$2,400 per sub.

And if that’s an appromixate value of a wireless subscriber today, what’s a rational carrier willing to invest in acquiring a new sub?

No doubt something between $0 and $2,400. An interesting way of looking at customer acquisition. For a company that delivers value over the network.

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