MetroPCS could benefit from slow economy

Will an economic slowdown negatively affect prepaid? MetroPCS doesn’t think so (neither do I). Company executive VP and CFO Braxton Carter — killer name — addressed the Lehman Brothers Worldwide Wireless and Wireline Conference, and he was quite optimistic about the company’s potential for growth. Especially in their new AWS markets, which include Las Vegas, Philadelphia, Boston, and New York City.

Dense urban markets, where MetroPCS concentrates, are ripe for about 15 percent penetration based on the MetroPCS business model of unlimited calling time, enhanced in- building coverage and a low pre-paid flat rate ranging from $30 to $50 a month. It’s a proven winner in even the most depressed markets, Carter said.

Metro’s forthcoming AWS markets in Philadelphia, Boston, and New York City cover 40 million people, or POPs, which is two-thirds of their current coverage of 60 million POPs. This could help them pull past Virgin Mobile in number of subscribers. Virgin has a little over a half million more subscribers than MetroPCS.

With 15 percent penetration, MetroPCS could add nine million customers to its existing base, he said.

Nine million seems like a bit much. But even if it’s half that, it’s a huge gain for MetroPCS.

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One Response

1. Remley Says
   

   There is obviously a lot to know about this. I think you made some good points in Features also.

   
   Posted on June 14th, 2009 at 5:09 pm

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