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Technology Stocks : Frontier - FRO
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To: Sjp who wrote (66)10/23/1997 11:26:00 PM
From: George Weiss  Read Replies (1) of 245
 
Sip, I don't have a stake in Frontier but I do recall their rise via
acquisition of a number of regional resellers. The growth through
acquisition was fast and may have caused some of the problems
your seeing today. A lot of acquisitions in LD take place and often
the acquiring company doesn't take the proper efforts to retain
the base their acquired. A glaring example of this is MCI's acquisition
of Telecom USA. They lost a lot of Telecom USA customers for lack
of proper attention to customer service and attempts to covert the
base to MCI products too quickly.

The other thing I see at Frontier ist the problem with upper management. The sickness of the CEO or Pres. who died of
brain cancer took its toll. But, more than that, the folks he hired
from MCI, Kevin Bennis, and others, just didn't do the job. They
weren't the right people for the job in the first place as witness their
resigning or being terminated. These kinds of decisions make can
make one lose faith in the decisions of the board and upper mgmt.

Bottom line questions are: Do the people that are left understand
LD well enough to plan and execute a new strategy or execute
the old one much more successfully. I don't know the answer but
since their are seemingly up for sale the answer may unclear.

George
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