Subject: [NEXTEL-1] TAXES AND REGULATION: THE EFFECTS OF MANDATES ON WIRELESS PHONE USERS:

From: [email-masked]
Date: Thu, 16 Oct 2003 13:40:40 -0400

TAXES AND REGULATION: THE EFFECTS OF MANDATES
ON WIRELESS PHONE USERS:

Highlights:

Local Number Portability (WLNP). The FCC is requiring that carriers be prepared to
offer number portability – which allows subscribers to keep their wireless phone
numbers when they switch carriers – starting November 24, 2003. Complying with
WLNP involves a variety of upfront and ongoing costs associated with the purchase
of new software and equipment, constructing new number databases, inter-carrier
testing, and implementing new business procedures. The largest portion of the
costs, however, is associated with increased “churn” – i.e., customers switching
carriers. We estimate the increase in costs associated with WLNP will be $1.60 per
customer per month, and total over $12 billion over five years.

=================================
 Sprint PCS $141.7 million for
2001-2004

$1.4 billion for
2001-2004
=================================
Cingular $202-$227 million by
year-end 2003
=================================

AT&T Wireless $149.9 million by
year-end 2003
=================================
Verizon Wireless $50 million as of June
2003
=================================
Nextel At least $100 million
=================================

Table Source Industry CTIA Carriers Sprint Cingular AT&T Verizon Nextel Analysts
Zachar Cost estimates reported by the carriers et al. (2003) $50 million Roger
Entner $50 million (already incurred) Hyers (2002) $900 million to Note: Carrier
cost estimates from publicly available filings and statements by company
officials.

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