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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Stephen B. Temple who wrote (1548)10/16/1998 8:41:00 AM
From: Stephen B. Temple   of 3178
 
OT> Competitive LECs (CLECs) are "picking off the top," offering telecom services only<>

October 16, 1998 COMMUNICATIONS DAILY via NewsEdge
Corporation : Competitive LECs (CLECs) are
"picking off the top," offering telecom
services only in top end of small business and
residential market, BellSouth executives told
reporters Wed. In news briefing, Krista
Tillman, vp-small business services; Susan
McLaughlin, pres.-consumer services; and
Suzanne Detlefs, pres.- ad & publishing,
discussed impact of Sec. 271 process on
their customers. Tillman said "worry" is that
BellSouth will be left with rural areas and
other less profitable markets where universal
service obligations require it to offer service
while CLECs attack more lucrative areas with
combined local and long distance packages
that BellSouth is unable to match. Although
CLECs are entering market aggressively in
some regions, Tillman said, competitors are
concentrating on "pockets" and don't cover
broad service area. McLaughlin said
competitors are unlikely to offer service in
less profitable regions for "long period of
time." She emphasized appeal of
one-stop-shopping approach, especially for
residential customers, and said company
needs ability to provide long distance in order
to remain attractive to customers: "When we
put another offer out on the table, that is
not enough." She said customers are looking
for "more simplicity" and want "total bill to be
combined," option that BellSouth can't offer.
Most successful entrants into residential
market are offering local and long distance
and are "doing extremely well," McLaughlin
said. BellSouth offers limited
one-stop-shopping packages, providing
access to variety of services, including
wireless and wireline, and will expand with
Internet and messaging services, she said.
Tillman said BellSouth provides customers
with high level of service to build customer
loyalty, providing small businesses with
one-on-one service management and paying
attention to specific needs.
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