ILNK: The Importance of Disruptive Technology and Lower Prices(10)
by: Glotech (49/M) 4/24/00 6:34 am
Msg: 26980 of 27072
The PHASE III is to PACKAGE it for a possible spin-off. And that's where I-Link management must first resolve the Winter Harbor warrants issue and clean up the proverbial "poison pill". Once that's taken care-off, I-Link is in a position to prepare four separate businesses units for possible spin-off.
This is how I-Link is developing, in my opinion, the four major businesses under one roof for possible "spin off":
1. I-Link [Communications] will be competing with the likes of "AT&T" with their IP Network/Integrated Access Network for local and long distance [including international] communication services by using a lower price model.
2. I-Link [ViaNet] will be competing with the likes of "Lucent", by leveraging its strategic partnerships with ECI Telecom, and offer its hardware and firmware products like INDAVO (IAD), IP Gateways, etc.
3. I-Link [MiBridge] will be offering the current IP technology and the recently announced innovations [such as Softswitch Plus, V-Link Plus, and the state-of-the-art OSS platform] to the rest of the players in the IP communications arena.
4. I-Link [Systems} will be positioning to be the next "Net2Phone" with its IP telephony for enabling B2B commerce on the public Internet? with products like Internet Call Waiting, TalkFree, web based conference calling, and virtual call centers.
I-Link has built a Pure IP Network [and Integrated Access Network] for less than $100 million dollars and I-Link has no debt. I-Link has developed its "software", "hardware", and "firmware" products internally for deployment over its own Integrated Access Network. I-Link's cost is 1/10th of what it would cost its competition that acquires such enabling technology from the likes of CISCO or LUCENT. And when you add this saving to the additional savings from leasing backbone network of others [surely a declining asset with time], you have the recipe for explosive growth in all of the four business areas because of disruptive technology and vastly lower prices. The major telecom companies will fight back, but the capital cost of communications infrastructure deployed years ago at much higher cost will prevent them from dropping their prices below a certain minimum level. That minimum cost being the amortized cost of expensive infrastructure and interest payments on the borrowed money.
continued.......
Glotech |
