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Microcap & Penny Stocks : MSU CORP-----MUCP

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To: 2of2 who wrote (5718)7/18/2000 1:25:12 PM
From: Hawkmoon  Read Replies (2) of 6180
 
2of2,

I understand your concern about the 56K limitation and I understand how you could perceive it as an issue. However, it takes very little for Web2U/MUCP to incorporate any form of modem that a customer might require. It is just a matter of incorporating the required communications chipsets, whether they be ADSL, Cable, ISDN, wireless... etc.

As I understood the rumour, MSU has an Ethernet (cable/ADSL) version in prototype that just didn't find much interest among customers due to the lack of infrastructure and the competition from companies like Scientific Atlanta.. etc. Thus, MSU has opted to market in an area which is underserved, with a device that meets the infrastructural assets in most target markets. India and Africa are limted in the amount of phone lines available to their people, without their worrying about cable infrastructure.

The business model is to provide a very low cost Internet Access Device (no more than $150 including keyboard) that utilizes existing TVs and phone lines to provide basic internet service. Web2U purpose is, in essence, to provide the "training wheels" to the technologically "unwashed masses" in the developing world, as a stepping stone toward more sophisticated products (which MSU will likely have developed by then).

It is also targeted at the "silver surfer" (like my parents), who are still intimidated by full-blown computer systems and O/Ss like Winblows, although that may take longer to achieve here in the US and will face competition from broadband set-tops (which are much more expensive).

And I see Tork posted the info on Jadoonet and Samsung. Samsung will produce the box, according to rumour, and MSU will collect a nice licensing fee (probably between $10 to $25 per unit). Rumour has it they will commence manufacturing sometime in the next 30-60 days and are looking at far greater production capacity.

Flextronics is a nice deal to have under one's belt. Although their manufacturing costs will likely be more expensive than a manufacturer like Samsung, it does provide significant overflow insurance that any potential customer will desire in case demand exceeds anticipated supply. In that case, FLEX could quickly ramp up and fill that overdemand (although profit margin to MSU would be less per unit).

So with a diversified manufacturing base consisting of Shanghai Thakral, Samsung, and Flextronics, MSU stands ready to meet any anticipated or unanticipated demand.

In sum, while many people overseas may not be able to afford computers, many can afford a simple set-top box (which could be made much more accessible with likely governmental subsidies).

Hope this helps.

Regards,

Ron
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