🚀 go-pugleaf

> I heard somewhere that FIDO sells analog airtime at $0.20/min, but pays 
> for it $0.15/min to Bell / Mobility Canada.
> It seems that Clearnet got a better deal when paying $0.11/min to
> Cantel, but
> got less quality, and must share their $20/month pie. They never know,
> month


Um if these figures are evenly remotely correct,
how did ClearNET get the better deal?

ClearNET subscribers got a better deal,
but not ClearNET themselves.

As these minutes are included,
ClearNET takes a HUGE loss and ABSORBS each Analog call made.
They are ought $0.11+ each minute.

ClearNET also includes VoiceMail, and CID
where do they make their money? 

Fido, assuming your figures are acurate, recoup $0.05 of each Analog Call
made, they also gain $3 for CID and $2 for Enhanced VoiceMail.
It appears that Fido re-invests these earnings into their network
expansion, and are improving holes in their coverage more quickly/
and aggressively? 
Who is getting the better deal?

From a business standpoint both companies have huge development and
operating losses for the first 7 years likely more.

As it was reported fido added over 101,000 subscribers in Q4 1998
(including Fidomatic PCS)
compared to about 35,000 ClearNET PCS additions,
they appear to be in the lead.

ClearNET's Mike has a totally different infrastructure (iDEN)so you
cant really pool resources and then re-divide them into two different 
areas. One of the two would thus be underserved.
I assume Mike earnings go back into Mike development etc...
Maybe someone can correct me here?

Notice ClearNET's change in marketing strategies,
now offering unlimited evenings, to try and gain those
niche customers who had this type of plan with Cantel and Bell.

ClearNET is begining to look more and more like the others
all of a sudden, what is distinguishing ClearNET other than included
CID/VMail and no contract.
It seems ClearNET PCS is loosing their unique future friendly vision with
no change in hardware and their shift in plans.

Now lets hope a new CDMA 1.9Ghz phone becomes available,
sometime before summer. 
I can't see them going into Q3 '99 without a new offering,
I mean is our Sony 1206 phone Y2K ready?:)

> Since they are selling phone in cities that are not covered at all in
> digital, it appears that:
> 
> 1) They pay %55 of these airtime fees directly to Cantel.
> 2) They pay a lot of advertizing in these cities, to make Cantel make
> money.
> 3) They compromise their own reputation, because the name of the service
> is 'Clearnet', but the (bad) quality is 'Cantel'. (They make a Clearnet
> phone
> behave as a Cantel one).

If this is true it is a mistake.
They are no longer selling PCS but reselling Cantel Cellular. 

Shidan.
---
Shidan S. Bartlett,
Simon Fraser University
    Email:  ssbartle@sfu.ca