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Technology Stocks : Excel Communications
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To: Joe Jackson who wrote (2440)12/21/1997 2:09:00 PM
From: Rob S.  Read Replies (1) of 2806
 
Thanks for great fact finding. This information squares with what I have been told by Mary Bell, VP of IR.

In some areas of the country the local service providers charge a healthy premium campared to other sates. It doesn't make sense to have the same rates for the customers in states where the local carriers are either scalping the public, are inefficient or truly have a higher cost of providing the service. The current flat rate Dime Deal means that some customers are susbsidizing the regions where local service is more expensive. It may be hard for some people to swallow this but they should be advised to take their dislike for the disparity in rates out on the local regulatory agencies rather than Excel or other LD carriers who must either pass on or absorb them.

I think that the commercial program will provide a lot of challenges nad opportunity for growing Excel's business. This should be very exciting for IRs as well. Excel has grown a multi-billion dollar business based almost entirely on residential and very small business sales despite that fact that a large portion of overal long distance usage is to the business segment. I don't know what the goals are for building the commercial business, but it seems posible for it, along with increased international service, to become at least 1/2 of Excel's overal business within a few years.

From the perspective of someone who has looked at the Excel IR program in the past and decided not to pursue it, the prospects of being able to do a the commercial business makes the idea much more attractive. As one aspect of creating additional opportunities for existing IRs, Excel should find it easier to recruit a new wave of IRs who are keenly interested in establishing commercial business. This could create tremendous momentum for some IR organizations who know how to pursue it. There is nothing in Amway or Shacklee or other MLMs that parallels this - " . . did you hear what John over in accounting did? . . he sold management on changing long distance carriers to a company called Excel, he worked with a salesperson who was able to show competitive rates and some new bill reporting services for our sales and service departments. Now that idiot gets a commission on every LD call that Big Cheese Electronics Company makes. I asked him how I could get on board . . . if John can sell it to our tight wad management, I believe I can sell it to my uncle's business."
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