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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)
FTEL 0.647-11.6%Nov 20 3:58 PM EST
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To: Gary E Stein who wrote (24632)1/9/1998 8:11:00 AM
From: Stan Howe  Read Replies (3) of 41046
 
As an analogy, I would think of WorldCom as a large supermarket chain obviously with many stores(POP). Each supermarket has shelf space for different products, including some of their own. These products will serve different needs for different people.

A manufacturers of a product in a lot of cases pay for shelf space(floor space), sometimes right next to competitors product. The supermarket chain has no obligation to sell the products. That's the manufacturer's job. When a product sells, the market chain grabs more revenue from the sale of the item. Sometimes the product is good but the in-house brand is cheaper due to less overhead costs.

Again, the market owns the Point of Presence and can charge for floor space as well as a portion of the product revenue. If the product doesn't sell, its the manufacturer who continues to foot the bill for shelf space. If the product does not sell for extended period of time, the market chain may pull the product off the shelf for a more profitable product.

WorldCom is the electronic supermarket, providing space for anyone who wants it. FNET is the manufacturer of a service/ product. Can FNET market the service? I hope so. I don't expect an announcement from WorldCom. Its just another company requesting to do business on their backbone.

Stan
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