Steve and 613, there exists within ATT a hierarchy that embraces the days of old and refuses or is unable to change. Then there is the new breed led by Petrillo and supported by Armstrong trying to effect the change and meeting resistance at every point. Whatever they do triggers the corporate immune system. Not unlike dealing with the government. So, first off, there is that political element. Then there is the faction within ATT that embraces the old copper wire days and try's to stymie every effort made by the optical, broadband and telephony guys. Their PR department is like a dear in the headlights these days. Afraid to make any bold move because every single thing they have tried has been taken apart and presented by the media in it's most negative light. When this announcement gets done it presents a radical change from who ATT was to who they will be. There is a large segment within ATT that wants to delay that as long as possible because they are afraid. Also, nobody, even though ATT/Sprint/WCOM are ALL routing calls over the Internet right now, wants to admit the extent of what they are doing because they are avoiding tariffs and reducing margins by doing so. Lastly, when ATT effectively hooks up your phone to their cable systems and they are the largest cable operator in the Country, at that point they are back into the local phone business. Remember though that both Scientific Atlanta and Motorola are installing Net2phone software and phone receptacles in all of their set top boxes they are delivering to ATT. Regulations currently allow ATT to do this and to go back into the local phone business. Pretty soon, ATT will just give their customers the option of unlimited phone service anywhere for say $20 per month. Won't matter if its local or long distance. These calls will travel over a piggyback of the Internet which ATT can do with all of their outer edge coverage and pops and that will be that. Again, as much as one segment would love to tout this to the analysts and make the stock go up, there is another that is afraid of doing so because they fear further regulation.
ATT wasn't kidding when they said they planned on saving 10 BILLION per year with Net2phone.
Message 13376050
In doing so, they will at least quadruple revenues for NTOP, I would say at the minimum.
This article was premature but fairly on target in many respects. NTOP is ubiquitous. they are everywhere, Yahoo, MSN instant messengers all powered by NTOP.
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Further, it would not be unreasonable to say, IMO that Net2phone could be the next QUALCOM in many respects. Their new company ADIR which is owned by NTOP with CSCO, Sodtbank and IDTC as partners so far will be licensing software in addition to selling gateways. That means that everyone that buys it and everyone will eventually have to buy similar software, will be paying a fee every time a call is made. This software is capable of handling millions of calls and minutes and doing everything from billing, to least cost routing to voicemail and speech. It is proven and tested and selected and endorsed by no less than CSCO as the platform of choice. The revenue potential from ADIR could be fantastic. I've been avoiding posts like this in strong support of NTOP due to the market. Too many people were getting creamed no matter which stock they bought. However, with NTOP at these prices and the fed as our friend and for all the reasons previously mentioned. To me it should be on anyone's list of top 5 stocks that may provide a fabulous return in the future.
More on ADIR
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All of the above IMO. Please do your own due diligence and be careful in the market. |
