Question-and-Answer Session
Operator
(Operator Instructions) And the first question comes from the line of Mr. James Ratcliffe with Barclays Capital. Please proceed.
James Ratcliffe – Barclays Capital
Good afternoon guys. And I have couple of questions, first of, is part of the debt raising you mentioned in some of the commentary in the release that one possible application where I believe like strategic opportunities in the like, and further implying utilized M&A prospects. Could you talk a little bit about what opportunities you see to be out there and what’s your kinds of things you are looking at?
Deepak V. Dutt
Obviously, we are constantly digging a brought opportunities to look at and we investigate them and there is always one or two in the hopper I am obviously not a liberty because of NDA to mention specific name, but what we are looking for M&A opportunities, which would be synergistic with our business and allow us to show both revenue and margin growth because you either a distribution capabilities, our technology, or product capabilities, our service capabilities that will be complementary to what we have today.
James Ratcliffe – Barclays Capital
So, these would be add-on is not something transformational fundamentally?
Deepak V. Dutt
Yeah, I think there will be transformation. We don’t have enough money to buy something this transformational.
James Ratcliffe – Barclays Capital
Fair enough. And I guess secondly, I know you don’t publish a fax number, but can you talk about just year-over-year trends and it will sound like marketing spend was up and how much of that $4 million was really took some more SMB, but it was all of that that would be sort of $80 per unit or so. If you could just are talk about how marketing spend versus equipment cost are trending year-on-year and we could see more SMBs there.
Deepak V. Dutt
Yes. If you look at equipment costs they tend to be declining at the rate of about 10% to 15% a year, and over the last two years I think we recently close to those numbers. In terms of market the SAC per subscriber, it stands fairly constant, but for the last couple of year, but obviously we are signing up a lot more subscribers so the absolute number will be higher.
James Ratcliffe – Barclays Capital
Yeah.
Deepak V. Dutt
But I think most of that $4 million is in the consumer’s subscriber acquisition area.
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