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Technology Stocks : AT&T
T 25.82-0.1%3:59 PM EST

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To: Raptech who wrote (2763)8/15/1999 3:46:00 PM
From: Richard Catterall  Read Replies (1) of 4298
 
> The next question is how can any of the telcos be profitable with continuing pressure on pricing and revenue?

No expert but I understand the costs of providing the long distance service has also fallen precipitously. I believe that the costs of accessing the local line is actually greater to T than providing the "long distance" part of the call. This is the reason for their obviously strong desire to buy or make deals to allow local access directly to their long distance lines, ISP, etc. It will increase the profits available to them, probably exponentially while no competitor can provide the same bundle of services at equivalent prices. This is also why T can and has outbid all others for cable companies because they are more valuable to them than to any pure cable company.

I think also you will find T going very sloowly to matching these promotional plans. From talking to people they either switch everytime a "deal" comes long or remain with their carrier,usually T since they value the quality and reliability and have run into problems if they had tried switching. Everyone doesn't buy things from discount stores even if the product itself appears to be the same, the service, etc are not the same.
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