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Technology Stocks : Nortel Networks (NT)
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To: Zoltan! who wrote (6973)9/27/2000 9:31:08 AM
From: telecomguy  Read Replies (2) of 14638
 
Very good! It appears that as we lower price, the demand for long-distance goes UP! WHAT A SURPRISE.

Competitive price reductions that we are experiencing today are a direct result of DE-REGULATION & competition bringing long-distance rates down from an unnaturally high rates that PTT monopolies had been getting away with.

Nothing bad about that........in fact the wholesale rates that I pay has been coming down MUCH faster than the retail rates meaning higher profit margin for me. For example, I am now paying 1.8 cents US per minute from US to UK!!!!!! Internet Telephony becomes a non-starter at that kind of price since you still have to pay the local loop Carrier to terminate the call.

Things are almost always more complicated than they appear -- especially to a layman like you Zoltan.
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