Hi Guys ( and Ladies)
You're right, while you were sleeping, we over the pond have been working...!
Dan Adams, in answer to your message re DCI direction, let me try to give you some clarity .
DCI in relative terms is a small tightly managed company (unlike giants like AT&T etc) and for that reason is able to see the market moves and make mid course alterations as well as take advantage of open market niches.
The RETAIL DISTRIBUTION of prepaid telephone cards has become (in the USA) and now in the UK very competitive with many small players trying to gain market share. In order to be able to compete, a company must be have
1) serious national distribution
2) a competitevly priced product
3) the financial desire and ability to wheather the storm until the market shakes out the smaller uncompetitive companies that compete only on price
CCUK in unison with DCI board of management saw the market in the UK becoming more and more competitive, and decided to exit the RETAILING SECTOR while the going was still strong, and in a controlled manner sold off the distribution to Smartalk Teleservices who demonstrated their willingness and ability to sustain themselves in the emerging UK marketplace.
As far as sales via vending machines is concerned, the retail price of the prepaid cards vended via these machines is higher to those sold over the counter in shops, distribution costs (after initial capital costs of the vending machines is paid) is negligable, and accordingly profits/margins are much higher.
There are several other factors which I cannot elaborate on at this time, but suffice it to say, DCI's board have to a fine cord analyzed the vending business and all of us are on a clear mandate and mission to build a giant pan European /' Global Prepaid Card Vending operation. The expansion of the vending operation will happen immediatly, in several countries simultaneously, and will bring strong financial results in to the group.
Ultimatly, what will bring value to DCI (and the shareholders) is the establishment of the global network, continuing growth in revenues and margins and off course bottom line profits.
Any other questions, just ask.
Michael J Zwebner |
