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Non-Tech : Amati investors -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (28342)	11/5/1997 2:24:00 PM
From: NYBellBoy	Read Replies (1) \| Respond to of 31386

Pat -- Telcos Regulatory Accounting lives are being shortened by the State Regulatory Agencies. The State Regulatory Agencies have always been a balancing act between short asset lives (reality) and regulatory asset lives (artifically high) so that the taxpayers phone rates stay low. Most of the larger telcos have taken write offs to shorten the asset lives on the financial statements, to approximate the actual asset lives. In an unregulated entity, the asset lives would be established based on asset life projections and NPVs, IRRs and ROIs could be based on real economics. RBOC engineers have always had the capability to overbuild the network, because they knew demand always exceeded expectations. :) BellBoy