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Technology Stocks : AT&T
T 25.620.0%9:37 AM EST

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To: Louis Cristiano who wrote (415)7/1/1997 9:43:00 AM
From: EB   of 4298
 
This has proven to be a good approach so far and should continue as long as the underlying economics support it. There is overcapacity in LD and ATT seems to have the highest cost network. Being the highest cost provider of a commodity is bad news. This forces the big LD carriers to provide wholesale chunks of service at bargain prices to these resellers. Imagine a strategy of shoring ATT and using the proceeds to buy these resellers.

Still, this does not excuse the NCR mega-blunder nor does it excuse the marketing fiascos where T was mailing out billions of $$$$ of shareholder value to less than loyal customers or flaunting a 15c rate in the face of Sprint's 10c rate (forget the time restrictions), nor does it excuse hiring a printing company executive as an heir-aparent only to chop him off at the knees in a poorly handled, publically botched negociation which regulators were salivating over like a long ball hitter watching a high, down-the-middle off-speed pitch coming at him in slow motion, nor does it excuse stacking the board with Allen rubber-stamp cronies who have no technology experience.

This is a sick and dying company in which the imune system is absent. Only a collosally ineffectual, inept, subservient board could watch a decade of shareholder erosion from their lounge chairs at their golf clubs. They must be paid pretty well.
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