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Technology Stocks : I-Link Inc (ILNK), VoIP Telephony

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To: Q. who wrote (246)6/4/1998 9:35:00 AM
From: Ron Kline  Read Replies (1) of 417
 
How I've read what they are doing, they had to offer low rates to attract IR's to sell the phone service. Their initial costs were high due to buying time from MCI to cover anyone in the US who wants phone service. But they also have their own network which they are expanding that allows unlimited amount of calls for a fixed price to them. If and when they get their network to handle calls from all locations they should see a much greater revenue vs. operating cost. They also need to grow the subscriber rate at a fast enough pace so that the investment in their network pays off. If you compare year over year their sales tripled but costs only doubled, so it's gettting better over time. As far as financing I know that much of it comes from Winter Harbor, and I believe they have a pretty big stake in the company, so I think they would have an interest in ILNK getting that money...but I have not read so can't really comment.
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