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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (3415)	1/14/1998 6:31:00 PM
From: Edward Murphy	Respond to of 12468

Great day ! Patience does have its rewards. The line installation numbers were right on with what H&Q analyst had written. I had been unhappy with third quarter numbers of 21,000 but half were in the last month. Todays report shows that September figure was not a fluke. I had been forgetting about the hubs. We only had 3 hubs at the end of June and five switches. By conference call in late October we had 21 hubs and now have 49 by year end. Without the hubs we were still dependant on the incumbant carrier. With the hubs now in place winstar will truly have speed to market in those cities where we have switches and hubs. Todays numbers I believe partially reflect the increase in hubs and should only get better. I'm told by IR that it takes about 90 days to get a hub up and running and per Jack Grubman's report the cost per hub is now $250k to $350k but should drop to $200k with the point to multipoint deployment. Appears to be money well spent. Once hubs are established in cities acquired from US One these installation numbers should really balloon. Mr. Grubman is anticipating 300k lines installed by year end and 135 operational hubs. I would guess this would mean line installations well in excess of 50k per quarter by the fourth quarter. As a frame of reference Brooks Fiber installed 24,600 lines in the third quarter of 1997 and had 80,000 lines in service at the end of that quarter. Teleport installed 46,800 lines in the third quarter and had 249,500 lines in operation at the end of third quarter. Still plenty of upside left. Ed