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Technology Stocks : WCOM

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To: BEEF JERKEY who wrote (10561)6/10/2002 10:29:34 AM
From: Thomas Walker   of 11568
 
News Analysis: MCI trumps with its Neighborhood plan

Good article. There's been a lot of talk on this board about the profitability of this plan. The article states it at 45% gross margin. Provided that's true, that's excellent news (for WCOM, that is).

Some analysts already estimate WorldCom could be set to profit handsomely from the plan. According to Kaufman Bros., LP analyst Vic Grover, the Neighborhood could generate a subscriber base of 10 million customers within several years.

With gross margins of around 45%, it could even become a multi-billion dollar annual business for WorldCom, says Grover. That could offset WorldCom's losses from the RBOCs increasing entry into the long distance market.
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