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To: pkwknk who wrote (3347)	1/10/1998 9:16:00 AM
From: DubM	Respond to of 12468

This article from AP. .c The Associated Press NEW YORK (AP) - They're the most coveted merger prospects in the telecommunications business, and most people haven't even heard of them. But long-distance phone giants are hungrily eyeing these upstarts - including WinStar, Intermedia and other small sellers of local phone service - as a wedge into the lucrative markets of the regional Bell companies. In the latest such marriage, AT&T Corp. on Thursday agreed to buy Teleport Communications Group Inc., which provides local telephone service to businesses in 66 major cities, in a stock swap valued at $11.3 billion. The acquisition comes after WorldCom Inc., the fourth-largest long-distance phone company, bought MFS Communications and Brooks Fiber Properties, two other non-Bell providers of local service. WorldCom last fall also agreed to buy MCI Communications Corp., the second-largest long-distance phone company, in a deal then valued at a staggering $37 billion. These scrappy sellers of local phone service, primarily to businesses, are also combining with other small telecommunications companies. Last month, Intermedia Communications of Tampa, Fla. said it would buy privately held long-distance firm LDS Communications Group of Monroe, La., for $151 million in cash and stock. In another deal, New York-based WinStar Communications is buying Midcom Communications Inc., a long-distance firm in Southfield, Mich., for $92 million. Unlike the five regional Bell companies that survived AT&T's breakup in 1982, these companies are free to sell both local and long-distance phone service, enabling them to offer all-in-one packages of phone and data communications to companies, the most profitable sector of the telecommunications business. Most of the carriers also have built their own networks of fiber-optic cable, freeing them from the need to lease lines from the regional Bell companies. In 1997, the competitive local exchange business grew more than 50 percent to $3.1 billion, according to the Yankee Group, a Boston-based research firm. The companies became even more attractive last week after a federal judge in Texas ruled that the regional Bells could start selling long-distance phone service without first opening their local markets to new competition. While the order is being contested by rivals and federal regulators, it has kindled a fire under long-distance companies worried the Bells will be the first to sell all-in-one packages. So far, long-distance companies have been stymied from buying Bell regional phone companies by federal regulators worried about stifling competition. ''In the end, everyone is under tremendous pressure to make the local market competitive,'' said Berge Vazian, an industry analyst with the Yankee Group. As far as suitors, foreign telecommunications companies such as British Telecom could be next to try to snap up a local phone company. The British phone monopoly was forced last fall to pull out of a long-standing agreement to buy MCI when WorldCom announced it would pay billions of dollars more. Buying a local phone company ''would allow a foreign carrier a direct American presence,'' said Dwight Allen, a Washington-based telecommunications consultant with Deloitte & Touche's consulting unit. ''It would relieve them of the necessity of doing everything from setting up shop to hiring sales people,'' he said. AP-NY-01-09-98 0537EST

To: pkwknk who wrote (3347)	1/10/1998 9:20:00 AM
From: DubM	Read Replies (1) \| Respond to of 12468

Another article. All this press and recs could make for an interesting next week. NEW YORK, Jan 9 (Reuters) - Shares of WinStar Communications Inc rose sharply Friday for the second straight day, following news on Thursday that the local telephone company is accelerating its market deployment plans. Also, Salomon Smith Barney analyst Jack Grubman initiated coverage of the competitive local exchange carrier (CLEC) Friday with a 12-to-18-month target price of $71 per share. "We believe WinStar will benefit from its ability to deploy its network faster than wireline-based CLECS due to the ease of installation of the fixed wireless technology," Grubman said in his analysis. Grubman also noted New York-based WinStar is the largest holder of 38 gigahertz licenses, which cover 125 markets, including 49 of the 50 largest metropolitan statistical areas. WinStar shares rose 2-1/8 to 29 on a volume of more than four million shares on Nasdaq. That follows Thursday's rise of 1-9/16. The company's stock is just 1/4 point shy of matching its 1997 high of 29-1/4 set in November and is again honing in on its life-time high price of 32-1/4, which it attained in May 1996. WinStar shares have nearly tripled in price this year since bottoming out April 28 at 10-1/8. On Thursday, WinStar said it expected to reach its goal of a 30-market CLEC operation one year ahead of schedule, or by the end of 1998. It initially had planned to cover 20 markets by the end of 1998 and 30 markets by the end of 1999. WinStar said the move should raise revenue and EBITDA projections for 2000 and beyond. 15:46 01-09-98

To: pkwknk who wrote (3347)	1/10/1998 12:32:00 PM
From: SteveG	Read Replies (1) \| Respond to of 12468

<..can confirm Vogel tgt of 100..> Thanks pkwknk. fwiw, I am a NBMO client, but my broker played hookie friday: Message 2665667 <..he and D Rheingold at Merrill are the two telco alleged gurus, and people often listen, as well as energizing their retail sales force....> I agree. And now Grubman's force is quite a bit larger <g>. I have his report and will try to detail summarize later this weekend. This is looking pretty darn good. (Hope you long termers don't mind the newer money TOO much <g>) Steve