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Technology Stocks : USRX . . . New Technology
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To: Don Walster who wrote (13)11/3/1996 5:54:00 PM
From: Dan Ross   of 35
 
Don, my response was on the USRX - NEW technology thread about 1 or 2 minutes after you posted.

I did not know that local telco companies had started to charge for local calls. Hmm, interesting & simply criminal. I don't believe that in the long-term it is a viable alternative to the normal flat rate structure.

All I know about local telcos & their problems is that a canadian telecommunication equipment company has introduced a product that they are currently testing with Southwestern Bell. This should alleviate the problem of trunk space getting hosed up at the telco level. I can't say my source on this one but I'm not blowing wind up your skirt if you get my drift. Their revenues of the company are about 8 billion a year + or - 1 billion & a price of oh, 62 or so.

This problem is the biggest problem facing the telco industry right now & big $$$ will be spent on this product. With the internet growth rate growing at > 100% each year, telcos are getting hosed up at the local level and are seeking to eliminate the problem before it becomes a major problem & people can't make normal phone calls.

Currently, California & New York are the only 2 areas I know that are experiencing this problem. From what I read in the Houston Chronicle, the problem will begin to show up nationwide within 3 years. Many of the local telcos are already finding out the problem and trying to take care of it now!

good luck & best returns

Dan
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