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To: larry pollock who wrote (3345)	1/15/1998 4:00:00 PM
From: kech	Read Replies (1) \| Respond to of 4429

I think the argument is that since the court ruled that one of the RBOC's could get into LD this has created "regulatory uncertainty". Hence, instead of stimulating demand, it actually freezes spending until everyone knows what is going on. Given the speed of the courts, this could mean a 6 month stall.

To: larry pollock who wrote (3345)	1/15/1998 8:57:00 PM
From: Moe Damghani	Respond to of 4429

Hi Larry, thanks for clearing this up! I saw the same thing this afternoon and read the report. I also looked at other sources and studied the report in more details and found no merit to it. Since the analyst is so skiptical on his facts and is not sure about things, I figured he probably is one of those analysts who just wants to cover himself and leaving the option open to changing his mind later on. I also think that it is almost imposible to figure out the RBOC's spending budget before earnings are announced and plans are firmed. Ameritec is the only Regional bell company that announced its Q4 earnings so far. All others are yet to be reported. I remember the exact same thing happend last year around this time and two weeks later the Analyst changed his mind. I am also planning to wait for the Q4 numbers before attempting to send my concerns to the board members. I believe they'll exceed expectations by 3 cents. Thanks, Moe.

To: larry pollock who wrote (3345)	1/18/1998 1:30:00 PM
From: Filippo Zucchi	Read Replies (1) \| Respond to of 4429

Isn't any potential slowdown in RBOC's spending kind of a mute issue for DIGI considering that BellAtlantic has committed to buy several billions of dollars of equipment form DIGI over the next few years as part of the Bell/DIGI litigation settlement? Also note that the Bell purchases are supposed to kick in 1998. Many of us have had to be patient for a long time with DIGI, but often turnarounds are slow. The next two to four quarters will be the ones showing whether the restructuring of the last 2 years has worked or not. If DIGI's earnings and revenue growth do not come around in 1998, then mgmt. is the problem and it is time to move to greener pastures.