That would have hurt both fees and operating income.
More Quotes from Craig Moffett:
Despite the best efforts of the F.C.C. to create competition, after the bubble burst, there weren't any competitive alternative to the Bells. Now that the cable operators are able to offer voice service to complement their high-speed data, commercial services are a cherry waiting to be picked.Craig Moffett
The resignation carries obvious headline risk -- the stock is down heavily. But (it) does not mean that the strategy chosen by XM management is incorrect.
Craig Moffett
The phone companies are in the awkward position of initiating a service in an already mature market with a disadvantaged cost structure, ... And on top of that, they have to offer the service at a discounted price just to compete. It's a hard strategy to sustain long-term.
Craig Moffett
Any young company is going to struggle to find the right balance between growing and conserving money. But if a new subscriber is going to eventually pay more than XM spends to sign them up, then the company is doing shareholders a favor by growing as fast as they can.
Craig Moffett
As always with Cablevision, their motives are inscrutable,
Craig Moffett
This is a razors and blades business. Discounting of radios is one of the obvious levers they've got to stimulate subscription demand, because over the long term, that's where they make their money.
Craig Moffett
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