DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! Message Board

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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!!

DGIV 0.00

Dec 5 4:00 PM EST

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To: sandstuff who wrote (21216)	8/11/1998 9:02:00 AM
From: RocketMan	Read Replies (1) of 50264

This is an explosive market sector! Last Thusday I posted a PM I received from a lurker, in which he did an estimate and concluded that $1B per year in gross revenues is possible. Here is that post, with a few edits: I always trust Jeff Pulver when it comes to making estimations. According to him VoIP is "Not a 1998 Threat to Service Revenue (..for traditional telcos..) . Despite the Hype propagated by the media and mis-informed market analysts - in the current US$ 400 Billion Dollar Global Minutes Marketplace - 1998 Revenue for IP Telephony Minutes will be no more than US$ 50 million." (from Pulver points: July 21, 1998) 50 million USD revenue for 1998 .. at least, that gives us a starting point.. Now, that does not tell us what 2000 is going to be like.. Goldman Sachs and Frost&Sullivan's estimate differ by a factor of 8 !!! Jeff himself admits that the growth is going to be phenomenal.. the whole telecom industry might go over 1 trillion USD in revenues in a few years with the addition of X over IP services... What fraction of this is VoiP going to represent? hard to tell... Then again, if DGIV manages to get 0.1% of that traffic by also providing enhanced services in the future.. we're all set.. 1 B USD of revenues per year.. not bad.... (DGIV's web site is hinting at the fact that they might provide other services apart from international voice in the future.. I think that JC has understood what Delta Three management has been publicly saying for months.. right now, most VoIP companies are making lots of $$ by providing cheap minutes and bypassing the obsolete settlement rate system that pushes international rates for circuit switched voice up in a very artificial manner. But this is only going to last 2-4 years, experts predict, and traditional telcos will be able to come closer to the rates that current VoIP startups are offering..This number might be closer to 2 years if the FCC gives US carriers the freedom to negotiate settlement rates with non dominant foreign termination carriers in an effort to bring them down faster... A ruling on this should happen in the next few days/hours... When those rates come down significantly, enhanced services and efficient network management is what is going to be the bread and butter of VoIP companies .. and it looks like DGIV is positioning itself very well for that)... bottom line ... if everything goes as planned and if DGIV doesn't get stuck providing voice only (they already have bought an ISP), 1B USD revenues a year is possible..

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