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Non-Tech : Amati investors
AMTX 1.735+0.6%11:45 AM EST

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To: Bob Smith who wrote (12413)3/21/1997 11:38:00 AM
From: pat mudge   of 31386
 
[MCI]

<<<<MCI continues to sing the praises of DSL. In a conference call to reporters outlining new plans for its rural America broadband networks, Gerdelman says DSL is a 'marvelous technology once you get access to the unbundled loops.' >>>>

<<<Don't get caught up in this "unbundled loop" phrase..it is simply the negotiation between a carrier and a Long Distance Company. You may see some agreements by 3rd quarter which will allow this to happen. Once this happens, MCI can sell in a larger city and receive the total revenue stream (so can an RBOC).>>>

Exactly. And this is where they said they would "move aggressively." I believe they're beginning their assault through a media campaign. And it's giving the RBOCs coronaries.

By comparing TeleChoice's phrasing with my notes I was pointing out that the loop issue was being addressed --- that MCI had an aggressive plan to get the RBOCs to release them. Again, a small point to some, but critical to ISPs and long distance carriers.

From a speech before the FCC by MCI CEO Bert Roberts:

mci.com

<<<
The efforts of MCI and other new competitors to open the local monopoly markets to competition resemble MCI's long struggle to open the long-distance market to competition, Roberts said.

Acknowledging that the fundamental change induced by the new Telecommunications Act "never comes easy," Roberts expressed optimism that competition, not monopoly, will represent "the real face of the future of global communications."

While the Bell companies are resisting competition, MCI is striving to expand it -- implementing ambitious plans to compete in the local markets. MCI has established local networks and switching facilities in 19 markets. Just last week, MCI announced plans to be in 31 markets by year end, 1997. >>>

From March 19, 1997 press release referring to MCI's service in Denver:

mci.com

<<<<Since MCI began offering local service on its own networks early last year, the company has been winning customers by providing robust, integrated products with the features customers need now -- including inbound and outbound calling, 911 and 411. Customers also benefit from one point-of-contact for all customer care.

MCI's entry into the local service arena began nearly three years ago when MCI began to develop and construct its own local switched networks across the country. By the end of 1997, MCI will have invested more than $1.7 billion in this initiative.>>>

And another report to the FCC:
mci.com

On a different subject, you write:

<<<They would like to trial DIFFERENT methods of highspeed connectivity to customers in Iowa...notice that the first two were HFC & not ADSL...so maybe they are initially more interested in connecting to MCI business customers where FIBER in the city is installed. Now when the RBOC agreement for unbudled loops in is place..they will sell ADSL to residential homes all day.>>>

I'm not sure this was made clear in yesterday's press conference. I think WSTL and PAIR went up more than AMTX because if you didn't know better you would have thought Amati was viable *only* where MCI offered video, and they weren't offering that until next year. In the ongoing trials (NYC was mentioned) Amati's equipment is being used for video *and* data. I'm confident this misunderstanding will be cleared up as the trials progress.

One side note, I just spoke with the director of public relations at NEC/America and she explained that Amati was left off the list of vendors in all the MCI press releases because their contract is with NEC and not with MCI. Once they realized Amati had fallen through the cracks, they tried to get them added but didn't have time to send it through the legal channels. She was very gracious and accepted all the blame, but let's face it, no one, but no one, is going to look out for us. Not NEC, not MOT, not TI. If we want press, we're going to have to pursue it aggressively.

Off my soap box.

Cheers!

Pat

BTW, the director of PR is putting me in touch with Peter Taylor. :)
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