Startec Global Communications (STGC) Message Board

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Technology Stocks : Startec Global Communications (STGC)

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To: Crossy who wrote (16)	6/17/1998 8:40:00 AM
From: Andrew Abrams	Read Replies (2) of 29

Company currently has 3 switches in place. 2 fully functional. The impact on revenues would be significant for each new switch but ut takes time to populate them with customers. In order to do this quickly you sign up resale customers not residential custs. This is low margin business, but fills the switch until,the saleforce can add new residential customers. They currently buy lots of bandwidth for tranport in locations where they dont have switches. If they had lots of switches this would be substantially reduced and they would save a great deal. This is the objective, but in the meanwhile it will be costly to the bottom line and balance sheet. AA

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