FRANKLIN TELECOM (FTEL) Message Board

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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)

FTEL 3.025

-1.8%

Jan 14 3:59 PM EST

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To: vic klimpl who wrote (24545)	1/8/1998 4:37:00 PM
From: Billwar	Read Replies (1) of 41046

Vic, You are exactly right about the value of collocation. It provides for a high quality direct interconnection with WCOM's network that will save FTEL loads of money. It also gives FTEL/FNET immediate access to a worldwide network with minimal further contract negotiations. That is a huge savings to FTEL/FNET in terms of future personnel cost savings and lower marketing costs by being first to market. The most valuable advantage though is the ability of FTEL/FNET to become a "full service provider". Everyone in the communications industry wants to become a full service provider. In the case of FTEL/FNET, they can sell the DVGs to a company that will enable the company to move their official company traffic to an intracompany network (intranet) and bypass the public switched network. That will save the company thousands and thousands of dollars annually on their toll bills. For all other calls, the company must still use the public switched network at toll rates ranging from $0.15 to $0.30 per minute depending on time of day calling. FTEL/FNET now has a service offering to enhance the DVGs previously sold to these companies. FTEL/FNET can deliver most of the remainder of these calls over the internet as well bypassing the public switched network. The cost of these calls should fall in the range of $0.075 to $0.10 per minute any time any day. The savings here will range in the thousands and thousands of dollars. What kind of marketing advantage does this present to FTEL/FNET. With the FNET card, you can even use this service anywhere in the world where DVGs are available which is another plus to the corporate user. You think MCI was successful at marketing long distance at a discount, you haven't seen anything yet. However, I do not see FTEL getting any major recognition for their business plans for another six months. By then, their markets will be defined and the competition will be trying to catch up. I hope they do not publish too much about their customer base until they have major name recognition.

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