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Notes on tech

Notes on technology, business, enterpreneurship, economy, markets along with interesting general tidbits.

Cost of a subscriber

12/14/2004 10:21:00 PM, posted by anand

Jonathan Schwartz of Sun Microsystem does a very intersting calculation in his blog with respect to the Sprint-Nextel deal. He says that Sprint is paying around $36 billion to Nextel for the deal. Nextel has around 15 million subscribers. This means that Sprint is paying around $2400 per subscriber. So thats pretty much what a carrier is going to pay to acquire a new subscriber. On an average a customer's wireless (mobile) bill runs to about $50-$70 dollars. Lets stick with the higer number - $70. So it would take Sprint around 3 years to recoup the money they spent on Nextel. Anyone has a better way to look at it?
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