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Technology Stocks : FRANKLIN TELECOM (FCM)

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To: Noneyet who wrote (1134)6/29/1999 4:55:00 PM
From: Mitch Aunger  Read Replies (7) of 2891
 
All....

I've been working on this since Sethy posted his list. Most of his items are incorporated here. ALMOST every item is FULLY documented with links or a description of the source.

I hope to expand this list... if you have feedback, let me know.

I also have this in a Document that is much easier to read... if anyone wants a copy, let me know.

FCM

General

1. Revenues have shown positive increase for 5 successive quarters culminating with this last Q. I quote Frank Peters "On April 30, 1999 we filed our 10Q for the March quarter. Sales for the quarter were $4,270,000. Net income was $382,000. Earnings per share were $.02" -- see also biz.yahoo.com
2. Data/Voice Gateway (DVG) does Voice over Internet Protocol (VoIP)
3. DVGs do data (first letter is DATA)
4. DVGs do video (video is just data)
5. DVGs do FAX ftel.com
6. Making 35-40 DVGs per week ... You do the math (Source: call to IR)
7. Hardware is patented and Trademarked
8. Software is copyrighted
9. Manufacture our own proprietary parts - including the DSP
10. One year ago this month Peter Buswell becomes COO of FTEL. Look back and see why this is a positive fact. (No Brainer) He now runs FNET as well. I quote Frank Peters regarding Peter taking over FNET "In nine months, Peter Buswell has achieved phenomenal results in jump-starting sales and revenues for Franklin. I don't know of anyone more capable of creating the same success at FNet" ftel.com
11. Increase of customer base and repeat buyers (source press releases from FCM)
12. They build the hardware, install it, service it, and have their own VOIP network (FCM web)
13. Open new facility in ARZ "The new facility is housing the development team assigned to the Voice Router Internet Telephone System" ftel.com
14. March 16,1999 ended the BB era for symbol FTEL now was FCM on AMEX ftel.com
15. Ron Weaver on team. Mr.Buswells feelings on having Ron join FNET "after coaxing Weaver onto the team, could only be described as gleeful." Mr. Weavers thoughts on joining FNET "" I am excited by the synergy that FTC and FNet bring to each other and to the marketplace. My task is to see that everyone who can benefit from our products and services knows about them. Once they know us and examine our products, we have the flexibility to tailor both the products and services to meet their requirements. biz.yahoo.com

VoIP with the Tempest

16. Gartner group says it is a leading technology for the future.
17. Phone calls can be routed thru private nets or the Internet (source FNET web)
18. Market size estimated at 1-2 billion by 2001 (varying estimates - various sources)
19. To start a phone company, you can buy equipment for as little as $25,000 (source - Frank Peters interview)

Hardware

20. FCM Tempest is the gateway of choice to the largest VOIP network in the world. "During the last two months we have been digesting the ongoing design, installation and maintenance of the largest single VoIP network in the world." ftel.com
21. Units containing from 2 to 96 ports are available ftel.com
22. Ads running in product specific magazines (ex. Internet Telephony)
23. FCM joins INOW (Interoperability NOW) inowprofile.com . Mr. Buswell on INOW "What this means, in simple English, is that our Tempest® System products can interface easily and quickly with products from other companies supporting the iNOW! Profile. This includes many of the major players in VoIP such as Clarent, Cisco Systems and Netspeak. This is another step in promoting the inevitable growth of IP Telephony." ftel.com
24. There is something like 12x compression built in "Offering industry standard .711, .723 or .729 voice compression and T38 fax relay" ftel.com

Software

25. Remotely configurable and manageable - VERY powerful feature! ftel.com
26. Using LINUX - very stable and FREE ftel.com
27. Standards: ftel.com
H232 standard
S7 Europe standards ftel.com
MGCP standard ftel.com

Products

No longer a 1 product program. Tempest has expanded to become a line of new age telecommunication products:
28. TYPHOON is high density, carrier class solution designed to deliver over 1,300 IP telephony ports in a typical Telephone Company central office equipment rack. The low power, low profile, 2U high (3.5" high), rack mounted Typhoon supports upwards of 120 digital telephony ports per chassis ftel.com
29. FRANKLIN BRANCH DVG -- A four port version of the Tempest Gateway, optimized for the needs of a remote worker or small branch office. ftel.com
30. BREEZE is a 2-Port Gateway. Like the Tempest® Data Voice Gateway, the Breeze offers advanced voice compression, T.38 Relay Fax features, as well as a Windows based Graphical User Interface to enable rapid installation and configuration ftel.com
31. AMAS The Billing & Authorization Server within the Tempest System tracks and manages the database of subscribers. This product will set us apart from the rest. Billing Data is accessible from the web! Included FREE with hardware products ftel.com see also details in ftel.com
32. Internet gatekeeper ftel.com ""The glue that holds it all together! The Gatekeeper enables "interoperability" between the Franklin VoIP family of products and H.323 compliant products offered by other vendors. The Gatekeeper also enables Computer to Phone, Computer to Computer, and Web to Call Center communications using the rest of the Franklin VoIP family of products." ftel.com
33. CTS "Choose To Schmooze" bridges the Internet and public switched telephone network to add real-time voice capability to World Wide Web Pages. Peter B. on CST "Choose to Schmooze can make anybody's business smoother, smarter and more productive. Business owners, ISPs, Web Designers-this product is going to have them grinning all the way to the bank. And not only is it tremendous for business, it's downright FUN!" ftel.com
34. Franklin Internet Voice Exchange - The Tempest with a PBX ftel.com - for details see also ftel.com
35. 96 ports Peter Buswell states "The new units double the density of ports in the same amount of rack mount space. I should explain that rack space, whether in a collocation site for one of our telephone company customers or in a corporate site for one of our corporate intranet customers, is becoming more and more valuable. In collocation sites, the space in which you have your rack is essentially "real estate" and clearly, the more use you can make of your "property", the better off you are. With the new units, a typical seven-foot rack currently holding 384 ports can now hold 768 without the necessity of acquiring additional "real estate"....The 96 port model DVG will start shipping 4th quarter of 1999.
36. other extras worth noting ...G.711 Fax ftel.com
37. Product best in shows ftel.com

Customers/partners

38. OEM agreements with vodavi will lead to another avenue to move product off shelf. First order was for 30 boxes. ftel.com
39. Power & Telephone another avenue of distribution although unclear how successful they have been ftel.com
40. JM Best growing nicely jmbest.com
41. USAT & FCM are still doing business together. No indication that will change either. They have about 10,500 ports up and going. Looking for 20,000 by year end (source - SHM)
42. IDM Satellite - ftel.com
43. Alliance with Liberty One in Australia ftel.com
44. Alliance with WorldCom ftel.com
45. Netwaves alliance? netwaves.com - not sure if this is still alive

Known Customers:

46. FNET
47. JM Best ftel.com
48. USAT ftel.com
49. CVOZ ftel.com
50. Mid-Atlantic US customer (Feb 10 99) ftel.com
51. Customer switching from another vendor (Feb 10 99) ftel.com
52. Frank said in an interview that they had 30-40 small customers buying DVG's (still looking for the source)
53. FNET expanding IP Telephony network which will be located in California, Brazil, Ivory Coast in Africa, Lebanon, Azerbaijan and China. By the way Brazil should be up this month according to press release ftel.com
54. New small customers popping up for example 1 in Philippines with 6 units and another company has 1 in China. (source - SHM)
55. Tek DigiTel -http://biz.yahoo.com/bw/990525/md_tek_dig_2.html

FNET

56. Operating the world's largest VoIP network "During the last two months we have been digesting the ongoing design, installation and maintenance of the largest single VoIP network in the world." ftel.com
57. Recently expanded the Network Operations Center (NOC) by 300% to handle expected traffic (source: call to FCM IR and several reports via site visits)
58. June 1998 Harris sold Bosnia system to FCM and Franklin started the installation of a Harris switch. This switch allows FNET to terminate calls all over the world! ftel.com
59. Bosnia network is currently earning $120,000 per month pro rate that system alone out its earnings are on a pace to achieve $1,440,000.00 per annum. Fact is that network minutes are still growing and so is the network. ftel.com
60. Meeting with NATO commanders for further buildout of network over there (source SHM)
61. Capacity for about 1000 T1 lines coming into WLV office - thru GTE cables (source - early PRs from FCM '96 or '97.. not avail online that I can find)
62. Running TV ads in Calif for ADSL service (source - CEO report)
63. Fnet is handling about 1 million minutes a month of "off-net" traffic for USAT. (source SHM)
64. Underwriters have been in to set groundwork for IPO. If FNET runs 10M a year than it will be underwritten (source FCM IR)
65. Fnet revenues have increased steadily since Peter Buswell took over (source SEC filings)
66. ADSL "Fast Link" agreements with GTE & PAC Bell can only add to the bottom line ftel.com ftel.com
67. Some private DVG purchases are being added to the FNET network and managed by FNET (additional revenue per minute) (JMBest as an example)
68. Web design firm within FNET franklin.net
69. Pre-paid phone cards and Corporate cards fnet.net
70. International Cell phone calling fnet.net:88/cgi-pl/get_rates.pl?type=us-cell
71. International 800 Number service fnet.net
72. Wholesale Carrier Services. fnet.net
73. Existing ISP service - 500 pops in US and 13 in Canada franklin.net
74. Franklin Internet Services: franklin.net
75. HOSTING - Advertise to the world for the least cost and the highest visibility web hosting, domain registration, programming, and more... franklin.net
76. E-commerce - Establish your e-business presence by utilizing Franklin interNet e-commerce solutions and services. franklin.net
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