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Microcap & Penny Stocks : FNet=Internatl Voice/Fax/Data&Video Services ViaInternet

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To: Stephen B. Temple who wrote (367)1/11/1999 8:12:00 AM
From: Al Krasberg  Read Replies (1) of 609
 
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It sure burns a lot of cash, but like it or not the high-margin foreign minutes are what FNET is chasing. With only bits and pieces to go on, my WAG is that FNET's share should average 30 cents per minute or more.
Assuming 8 sites now and with 2 DVGs/site and 10% average usage (just lumping Bosnia in with the rest) you get 1,658,000 minutes/month, which translates into $500K/month or $1.5M/quarter. Increase usage, add more DVGs and sites and UP SHE GOES. $250K to set up a site, but then it pays for itself in a couple of quarters and it's just beans to add more DVGs at a site. When the rates come down a bit, it'll STILL cost $250K for competition to get in, and if they're not already there, that'll keep them out.
FNET's keeping it a big secret - won't divulge any actual numbers, but the quarterly should tell whether the strategy is paying off like I am thinking.
"Statesside is where its all at". You're right, if you're talking about competition.
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