Another look ********** From segment on Nightly Business Report on PBS tonite 02-10-99. I think
that this will be relevant to NPEC investors as future NPEC NR's will
state . *************** 02/10/99:"Where Best To Invest"- Part 3 Telecomm
Stocks
LINDA O'BRYON: Three years ago this week the telecom act was signed into
law, promising to open up competition in local and cable markets. That
deregulation and the rise of the Internet made 1998 a great year for
telecom stocks. And analysts predict this year will follow suit. So
night we take a look in our "Where best to invest" segment. Here's
Stephanie Woods.
STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: The latest trend
in telecommunications is companies positioning themselves to offer
customers a complete package of services. As that happens, the lines
between local, long distance and cable companies are getting blurred.
CHARLES PLUCKHAHN, VP, TELECOMS ANALYST, STEPHENS: You won't have any
distinction between local and long distance and there will be very
little distinction between telephone and Internet.
WOODS: Adding to that trend is the ongoing wave of mergers and joint
ventures between telecom companies. SBC's (SBC) deal with Ameritech
(AIT) and Bell Atlantic's (BEL) merger with GTE (GTE) are still pending.
Newly merged MCI Worldcom (WCOM) may consider buying a wireless company
to fill out its package of service. And AT&T (T) has suggested that more
deals like its joint venture with Time Warner (TWX) to offer voice,
video and Internet service over cable lines may be in store. New
companies like Qwest (QWST), Level-3 (LVLT), and IXC Communications
(IIXC) are building networks to prepare for a future where most traffic
is data and not voice. And word is that these new players could be ripe
for an acquisition by one of the established companies.
JOHN HAVEN CHAPMAN, LAW & ECONOMICS GROUP: The companies spending money,
investing themselves in this future, won't always have money available.
It will be necessary to combine with others to take advantage of their
capital.
WOODS: In the chase for profits, many analysts predict that the winners
will be a handful of large global players offering a bundle of services.
But others say there will be room for new players, such as Teligent
(TGBT) and Winstar (WCII), which are building local networks to serve
small and midsize businesses.
ALEX MANDL, CHAIRMAN & CEO, TELIGENT: There'll be a second group of
companies. There might be even hundreds of smaller niche companies who
come to the market with some advantage, either a geographic advantage or
technology advantage or have some way of differentiating themselves in
the marketplace, and those companies will continue to exist and grow.
WOODS: And while competition may squeeze profits in existing markets,
like basic telephone service, analysts expect new services to more than
make up for the lost business. Even costly DSL hookups are expected to
pay for themselves.
CHARLES PLUCKHAHN, VP, TELECOMS ANALYST, STEPHENS: This DSL service that
people are going to have to hook up to the Internet, that's going to
cost the regional Bell probably about $800 per person to put the
equipment in, and the revenues to the regional Bell are going to be $20
to $30 a month. That's a lot more profitable than the average phone
line.
Nightly Business Report transcripts are available on-line
post-broadcast. The program is transcribed by FDCH. Updates may be
posted at a later date. The views of our guests and commentators are
their own and do not necessarily represent the views of Community
Television Foundation of South Florida, Inc. Nightly Business Report, or
WPBT. Information presented on Nightly Business Report is not and should
not be considered as investment advice. (c)1998 Community Television
Foundation of South Florida, Inc. |
