Shares & Derivatives
Liberty Wireless & M1 impact
By LetsGetRichTgt  •  July 9, 2015
M1 announced that it will grant Liberty Wireless access to its mobile network to offer services to postpaid customers. In essence, M1 is selling their spectrum to Liberty Wireless (who has no radio spectrum because only the 3 local telco has them) for the latter to resell to consumers. How big this contract is currently still unknown. So I've no way to tell the impact of this arrangement to M1's financials. However, there are things we can know. New revenue stream By selling the spectrum to Liberty Wireless, M1 has diversified its revenue and even an recurring one as well. This is quite important to the company as mobile revenue takes up more than 80% of its service revenue and 60% of its operating revenue. Its good to always diversify your revenue to protect your company from any adverse impact. Cannibalisation By allowing a new entrant into the market, this ......
Read the full article
By LetsGetRichTgt
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance