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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)
FTEL 3.280-7.5%Jan 12 3:59 PM EST

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To: Martin P. Smith who wrote (29350)3/4/1998 8:28:00 AM
From: VALUESPEC  Read Replies (1) of 41046
 
Martin, how many phones can run at one time on the 24 port Tempest ? Twelve, right? Tempest cost $ 19,000. Phones used at any one time: twelve. Cost per phone: ~ $ 1,583.33

Now, what if you had 500 people making long-distance phone calls at any one time (i.e. telemaketing firms). How many 24 port Tempests would you need? One?

I don't think so. It would cost you approximately $ 1,600 per phone plus per minute costs which for all ~ 500 phones. Hopefully, the cost per minute usage will be much cheaper than the larger, more stable companies who will be vying for business with FTEL/FNET. If not, it may be hard for FTEL/FNET to get business since the larger companies are often viewed as more stable and likely to protect their initial investment by being likely to be in business in the future.

Of course, it is also true that some companies won't have the need for all 500 phones to be used at the same time for long-distance phone calls. However, the cost per available phone for long-distance usage would still come to ~ $ 1,600 plus per minute charges, plus installation, plus . . .

Am I wrong?

VALUESPEC
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