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Technology Stocks : Excel Communications
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To: Dow Jones Reporter who wrote (2676)6/2/1998 12:16:00 PM
From: Rob S.  Read Replies (1) of 2806
 
Johanna, I don't know who it is. Have you tried asking Mary Bell, VP of investor relations?

If you think about how the telecom landscape is rapidly changing, (in some respects - local access, maybe not as fast as some legislators and others had hoped), competition is increasing and the choices for consumers are expanding. major telcos have and are spending billions to roll out infrastructure that they hope to leverage efficiently to attract new customers or retain current ones to whom they can sell enhanced capabilities. Although Excel is now a "facilities based carrier" via the Telco acquisition and further build-outs, the primary strength is the unique (for near their size) marketing structure. MLM may not be for everyone but anyway you look at how ECI has done it, it is clearly a success. Added to that, Excel now has more traditional commercial and competitive call-around services to compete head-to-head with other telcos. The net result is that Excel is again able to add and retain customers at a faster pace than other major telcos. Retaining customers better than competitors may be where the real advantage in the marketing program is felt most. As competitors have to spend more for advertising and promotion to get someone on the hook, and then more customers switch to save some incremental amount or gain an additional service, ECI gains.

Excel leverages their marketing to take advantage of fairly mature types of telco offerings rather than trying to leverage their size to gamble on implementing unproven new offerings.
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