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Technology Stocks : SBC Communications -- Ignore unavailable to you. Want to Upgrade?

To: KEN G who wrote (22)	11/11/1997 6:22:00 PM
From: joarel	Read Replies (2) \| Respond to of 216

Of all the RBOC's, PAC's per line revenue is the lowest in the nation. A simple yet aggressive marketing campaign to get Californian's onboard with Caller ID(I refer to your 3% market penetration figure for California)is an obvious SBC strategy for short-run 98 earnings. I consider SBC's newly forged global partnerships to provide new revenue streams to tap into for needed investments in their domestic networks. And Ken, you hit the mark with your 98 assessment. SBC's escalated steps to move quickly will soon be clear in defending against viable new competitors. Watch out--here comes the axe!! Clouds on the horizon-- What is becoming more clear by the moment is the trends of the marketplace especially in data transmission technology. We're witnessing a mainstreaming effect with businesses wanting to integrate their voice, video, and data systems-utilizing CPE(Routers, CSU/DSU, FRAD's) to transmit voice over ATM, Frame Relay, or through TCPIP. With consolidation on this front--it will spell out less and less pots local and long distance phone usage. Then what? Regulatory bodies especially in California will get more and more contentious as SBC management takes the offensive in 98. Employee union contracts will be up for negotiation in the 3rd quarter of 98. I think that entire process will be far from cordial--the possibility of a strike is inevitable. With the UPS strike fresh on the minds of California businesses, the competition will have a field day. And don't forget the suit currently pending on the Constitutionality of the Telecom Act of 96. All this in the end, is a painful and damaging series of delays while the rest of the telecom industry is in the throws of "merger mania". But I consider SBC best positioned out of all the Baby Bells to persevere. Stay tuned. WHO'S BTW?