Winstar Comm. (WCII) Message Board

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Technology Stocks : Winstar Comm. (WCII)

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To: SteveG who wrote (9194)	11/7/1998 10:12:00 AM
From: limtex	Read Replies (5) of 12468

SteveG and all- Sorry this is a bit long but IMHO its why WCII now $34 and on its way much higher Did anyone happen to see the Chambers interview on Thursday morning on CNBC and notice what he said about long distance domestic and international voice? Well he actually said that his company fully exected that LD int & dom voice would be FREE within the near future. Deustsche Telekom had a bad week the week before last when they announced their results and soon afterward announced that they were reducing rates to their 40m customers. Its clear to everyone in the investment community that the days of soaking customers for ld rates is over for good and the squeeze on voiec revenues of Brtitish Telecom, France Telecom, Deutsche Telekom, Swisscom, STET, the Dutch and the Danish etc is now on. Believe it or not phione users in the UK pay BT a quarterly rental PLUS about 5 pence (8c approx.) for LOCAL calls. Incredible but its true. Just imagine how that affects peoples internet usage. In short any country that does that to its population condemns that population to a lower standard of living both now and in the future as the kids have been denied free time on the internet will inevitably suffer accademically compared with those kids that can spend as much time as they like without their parents worying about connect time charges. Thus the companies that I have mentioned above are going to have to compete on their home markets and they are all recently privatized having formerly been government owned monopolies. They don't have a clue how to compete in their home environments with the new technologies. They have depended for their entire existence on the same principals as Al Capone. Now without their protection they will be torn to shreds by the technology. Of course they expected some competition but the degree and force of the new technology was not apparent even maybe a year ago. When they did their business plans these companies envisaged going around the world acquiring companies to enhance their earnings so that their IPO's would be credible. They've all been buying GSM and other mobile operators expecting to be able to re-create this racket of soaking customers per minute but ominous clouds of technology are gathering which look like they could put and end to even that little scam. G, I and someone even mentioned the other day that voice calls on mobiles are going to be free next year. I can't rember the quote for this but maybe others can. Were this to happen it could be a catastrophy for the sisters no per minute charges for mobile is just about enough to give them a heart attack. One thing is now clear and that is that these companies revenues are going to get mauled in their home teritories and they have no clue how to prevent that. The only thing they can do is to look to the new world to see what is happening here at the cutting edege. No panic here but radical adjustment ala T and the CLECS and the fibre builders and the digital industry. There is one shining hope of developing revenues on a large scale quickly and that is wireless. You can bet the farm that Due Diligence is going on even today Saturday. Someone is going to bid for WCII and whoever were to get it the other sisters above would be jealous as hell and really upset at having missed their great hope. These guys have to go in front of the investment world every Q and explain and wireless BB is credible today ld voice and international voice is a dead duck. So where does that leave us well IMHO Bill should redouble his encouragemnent of the team with whatever necessary and wait 6 months. If the company continues to build like it has and the domestic voice revenues of the big sisters above continue to suffer then:- 1. The sisters will be frothing at the mouth to buy and 2. WCII will be over $100 a share. 3. Left to build for another year there is no reason WCII shouldn't be $200 per share in the year 2000. ( Just project the calender 2001 optimistic revenues) Best regards, L

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