To: +Country Tyme (14220 )
From: +Grupo Brad
Wednesday, Feb 24 1999 9:47AM ET
Reply # of 14295
DCI Achieves CLEC Status in Spain
Stratford, Conn., Feb. 24, 1999/PRNewswire/ -- DCI Telecommunications, Inc.
(OTC Bulletin Board: DCTC) today announced it will begin operating as a
Competitive Local Exchange Carrier (CLEC) throughout Spain as a result of an
agreement with Retevision. The agreement allows DCI to offer its
telecommunications services utilizing Retevision's Government license as a
CLEC. In effect, DCI will become an alternative local carrier to Telefonica
de Espana. DCI customers will be able to place phone calls anywhere within
Spain at competitive, and in some cases, significantly lower rates than
currently obtainable from the other carriers.
Retevision, based in Madrid, is the national cable television service
provider in Spain and has the capability to provide service throughout the
country. By establishing a network of wireless transmission facilities,
over which its signal can be broadcast countrywide, it has implemented a
creative solution to the costly process of running wire across the
mountainous topography which is prevalent throughout much of Spain.
Retevision's wireless network has been modified to allow DCI to seamlessly
transmit its telecommunications services. Currently, Retevision is
installing wireless transmission equipment within DCI's new Madrid office.
The result is an inexpensive alternative to the "hard-wired" solutions.
This affiliation is indicative of the growing industry trend toward
packaging cable and telecommunication services in order to achieve economies
of scale. In the United States, AT&T recently announced it will purchase
TCI Cablevision to gain low-cost regional bandwidth capability and access to
a large local customer base.
Back in January, Spain became the latest European country to deregulate its
telecommunications industry. DCI has been building its infrastructure in
Spain, over the past year, to be in a position to take advantage of this
deregulation. DCI has been targeting Spain as an integral part of its
European expansion plan, as the opportunity for market growth and profit
potential is great within this region. With a population of more than 39
million, Spain also attracts more than 40 million annual tourists. The
current annual telecommunications market in Spain is nearly $10 billion.
DCI is anticipating annual traffic in excess of $100 million for its CLEC
business in Spain.
DCI is in the final stages of selecting a supplier for three additional
switches to be deployed in Madrid, London and New York. Due to the
complexity and expense involved, additional institutions have been invited
to submit proposals. At present, the proposals are being reviewed by
management's analysts. Although this has delayed the deployment of these
switches, it has become apparent from the additional proposals submitted
that considerable cost savings as well as technological flexibility will be
gained through this process. Management wants to avoid entering into any
deal that would act as a drag on the future earnings capability of the
Company. It is in its best interests to continue negotiations until a
suitable transaction or series of transactions can be finalized.
Joseph J. Murphy, DCI's president and CEO, also indicated that negotiations
for additional financing is underway to acquire additional switches, retire
the outstanding convertible preferred issue, as well as provide operating
capital to assist this phase of the Company's growth plan.
This release does not constitute an end to the Company's quiet period which
was announced on December 18, 1998.
DCI Telecommunications is a global provider of telecommunications services,
including long distance, prepaid phone cards and Internet services. It has
an extensive distribution network throughout North America, Europe and the
Far East. The Company owns and operates switching facilities in Canada, the
United Kingdom, Spain and Denmark, with facilities planned for the United
States in the near future. There are currently 10 operating facilities
worldwide, serving customers in eight countries. DCI recently announced a
planned merger with Wavetech International (Nasdaq: ITEL) which is expected
to take place sometime in April, 1999. DCI recently reported sales of $28.1
million for the nine months ended December 31, 1998 versus $8 million in the
comparable prior-year period. DCI trades on the OTC Bulletin Board under
the symbol DCTC. Additional information can be obtained directly from the
company or its web site at dcic.com.
#####
/Contact: Craig K. Murphy Director, Investor Relations DCI
Telecommunications, Inc., 203-380-0910 ext. 3108, email
InvestorRelations@dcic.com, www.dcic.com/
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