Memo 2 we invested 500 million to upgrade

Memo 2 we invested 500 million to upgrade

Memo 2 we invested 500 million to upgrade our infrastructure in KC area Everest (competitor) offers bundled service starting at 84.95 a month presently there are aprox 321000 households and we plan to price in order to maintain a mkt share of about 65%. in addition to monthly costs associated with the 500 mil which is amortized over 20 yrs at 8.7% agreements with program providers stipulate that we pay them monthly fees of 32.50 per subscriber. on top of all this, our monthly maintenance service and billing costs are about 7.60 per subscriber. I am concerned that if we get into a price war with Everest, pricing in the market may move to unprofitable levels. if things turn for the worse, we need an exit strategy. How low should we be willing to go with our pricing before it makes sense for us to write off our operations in KC?


Price: £ 79

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