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September 24, 2008

Crunch may not impact wireless as many thought

Analysis of: What now for wireless? | www.rcrwireless.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Peter Curnow-Ford, ChairmanPeter Curnow-Ford
Chairman, Eisar Ltd.
Implications: While there is a definite impact on the low-income sector, and cable/telcos are seeing the impact with users canceling subscriptions, wireless/cellular does carry easy access (good for consumers) and higher margins (less susceptible economic low down) and will weather the storm. So yes there will an impact from the mortgage sector, with greater churn, bit in the end we all have to make calls. Its interesting that in a low income area, cars, satellite dishes, cigarettes and beer do command a very elevated position on the household spend chart!

Analysis: Its interesting that in a low income area, cars, satellite dishes, cigarettes and beer do command a very elevated position on the household spend chart!

I repeat this again - why because the mass or volume market is driven by certain sectors and those sectors do seem to have a priority list that means,

a) we are not missing sport on TV
b) I will be able to make a call while in the bar
c) etc

Polarised yes, but remember it is this mass market that generates the real cash for wireless service providers.

Other Analyses of the Same Source Article:
The Money is in Vertical Markets
September 24, 2008, Author: Carlton O'Neal, Vice President - Business Development, Proximetry, Inc.
Mobile Will Weather the Storm
September 24, 2008, Author: Tal Raeside, Managing Director, Insight Strategic Services
Impact of Recession on Wireless Services in the North America
September 24, 2008, Author: GLG Expert Contributor
The Impact of The Recession on Wireless
September 24, 2008, Author: P.J. Louis, President, PJ Louis LLC

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