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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: steve phil who wrote (16256)	5/11/1999 12:05:00 PM
From: Steven R. Bergman	Read Replies (2) of 19331

Well, DCI's in the switched -- as opposed to dedicated -- long distance business ("dedicated" here means that a customer obtains a leased "dedicated" circuit like a T1 to connect the customer to DCI's switch, allowing the customer to bypass the LEC's access charge). While the announcement says that IXC will not be promoting the wholesale segment of its business, there are two types of resellers, switched and non-switched. A non-switched reseller is a paper telephone company only, one that buys minutes at wholesale and sells at retail. DCI is a switched reseller (and can sell either switched or dedicated long distance minutes), is responsible for its own billing, etc. I suspect that DCI is in a special category for a number of reasons, especially the 5 year agreement with IXC that presumably is unaffected by this announcement. In five years, IMO, both the suppliers and the carriers will be be different and will be in different businesses, supported by a raft of currently unavailable technologies. I suspect that IXC had some older equipment and it wanted a convenient way to write it off. Steve B

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