To: Secret_Agent_Man who wrote (5277 ) 4/18/1998 7:47:00 PM From: Judith Read Replies (2) | Respond to of 7703
Like everyone else I have become a DGIV addict caught up in the excitement of the potential of this company. In talking about the company to friends and family, I realized how difficult it was to summarize what this company was doing. I started to organize my understanding and discovered many questions I didn't have answers to. I decided to write it all down and try to call DGIV next week and see what further information I could get. I realized others may be having similar difficulty keeping all the information on subsidiaries, products, technology, contracts, and joint ventures straight, so I decided to share what I put together. It is not meant to be all inclusive, and probably not even all correct. It is just how I am currently interpreting what we have been told from the press releases since the start of this year. I have left in the questions that I have. Any feedback is welcome, but don't attack me if I have mis-understood some information. JudithDGIV Companies/Joint Ventures DLD Corp This subsidiary handles the marketing and network administration support for the global network. How many people are employed by DLD and where are they located?TLA This Russian subsidiary is mentioned in the 4/17/98 press release.JD International This company was acquired 2/2/98. According to the press release, it has a joint venture with an unnamed company that operates in Korea as CNG Spacecom Ltd. It also has "partnerships maintaining network access points" in Seoul, Tokyo, Hong Kong, Taipan, Vancouver.CSA Digitcom This is the joint venture with PT Citra Swara Adidaya for marketing DGIV internet-based services. The opening of the new office in Jakarta was announced on 4/15.PT. Primedia ArmoEkadata Internet This company was acquired by DGIV on 3/27/98 and provides DGIV with a network infrastructure in Indonesia.Joint venture with Indosat In the 3/27/98 press release it is stated that there are plans for "the delivery of IP long distance services between North America and points throughout Indonesia". What are the terms of this joint venture? SEC Status DGIV has announced it's intent to file a Form 10 to become a fully reporting company. The actual filing of the form has not been announced. When does DGIV expect to file the Form 10? DGIV also announced it's intent to apply for NASDAQ small cap listing. No date has been given when an application will be submitted. Is their an estimated time frame when DGIV expects to be listed?Financing/Stock Information On 1/30/98 DGIV announced a 1.5 million share buy back program, which would be in effect through March into April. On 3/16, they announced 50,000 shares had been purchased. There has been no further announcement of any more stock purchases, and no official announcements by the company as to the status of the buy back. Will the company be buying back any more shares? On 2/6/98 a press release announced an agreement in principal for a staged investment of up to $60 million by The Dharma Group Corp., an international investment company with holdings in the Far East and the United States. The Dharma Group will accumulate a minority stake in Digitcom as its participation grows from a planned $12 million initial investment to be completed within the first half of this year. Did this agreement "in principal" become a signed agreement? What is the minority stake that the Dharma Group now owns? How much money has been received from the Dharma Group so far? If that money is available for further acquisitions and joint ventures, why is a secondary offering being considered?Products Mobile Callback Service This is a call re-origination service.FAXport This is a product which allows the transmission of fax over the internet.VOXport This is a product which allows the transmission of voice mail/messaging over the internet.NetCall This is a VOIP gateway server. Are these products owned by DGIV? Where are they manufactured? Who deploys and maintains them? How many of these products are currently deployed and operational? Is there any information on the performance of these products including capacities, latencies, voice quality. conforming to standards, etc.?Network U.S. A North American network is referenced as well as a U.S. switching facility. What is this network? What backbone network is used in the U.S.? Where is the switching facility located? What is the staff? What is it's capacity? What is the number of POPs? What is the current capacity for handling long distance calls? What is the expected time frame of upgrading this facility to handle the increased traffic from the new contracts?JD International Asian network The 2/2 press release defines this as the asian network which has to be connected into an integrated network. Was this done? It is unclear to me what this network consists of. What is meant by "maintaining network access points"? Is this colocating POPs at different network provider locations? How has this been integrated with the US network?PT. Primedia ArmoEkadata Internet network This network becomes part of the DGIV network by the company being acquired by DGIV, which was announced on 3/27/98. What is the makeup of this network and when will the required gateway servers be deployed.Contracts Citra Swara Adidya of Jakarta (Citra) On 1/20/98, DGIV announced a business understanding with Citra Swara Adidya of Jakarta (Citra). The press release said a "MOU signed by the companies commits them to jointly market Digitcom's innovative suite of Internet-based services by installing 24-port servers for use in the Digitcom IP/Voice network." Has this equipment been set up for the network? Have there been any sales to date from this marketing agreement?Louis International An agreement with Louis International Telecommunications & Equipment was announced on 3/13 for for DGIV to provide connections for Louis International's European call re-origination services and international long distance services. Louis International will market Digitcom's Mobile Callback(TM) Internet-assisted reorigination product along with its GSM services and is committed to providing a minimum of one million dollars per month in traffic. What is the revenue sharing terms with Louis. What network is DGIV using for these European calls? What equipment is required and when will it be operational? What are the expected operating costs. Without a cost per call or minute, we don't know what volume of calls this represents.Republic of Mordovia The way I interpret this release is that the Republic of Mordovia has gotten permission from the Russian Federation to combine regular voice phone service and internet voice service through the telephone exchanges. The DGIV-Republic of Mordovia agreement is for a targeted 1 million minutes per month for a combination of regular long distance and internet voice transmission for one year. There is no rate per minute given for either type of call. Also, the percentage of the revenues given to the Republic of Mordovia is not specified. It does not state that the first year is an exclusive, but only that the five year extension would be exclusive. There is no way to determine the revenues that would be generated from this agreement. There is also no information on how the service would be provided, including what servers need to be purchased/installed, how many, where, what backbone network etc., so the cost of operation can not be determined. What is the rate per minute? What percentage of revenues will be given to the Republic of Mordova? Is the first year on an exclusive basis? What will it take to implement this service?Pending Agreements A Joint Venture contract is to be signed with Elektrosvyaz (Rostov) in the Russian Federation. Memos of understanding signed with St. Petersburg National International Telephone and with Elektrosvyaz JS, Moldova. Based on the press release, it is expected that each of these Joint Ventures will be finalized in the second quarter of this year. What is the status of these pending agreements?