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Microcap & Penny Stocks : DGIV -- Good Prospects? -- Ignore unavailable to you. Want to Upgrade?


To: Michael Ulysses who wrote (7150)4/24/1998 3:26:00 PM
From: elk  Read Replies (1) | Respond to of 7703
 
I doubt that QWST and DGIV would have a future relation together. Qwst's international alliances, to date, have been with people who can provide Bandwidth in sectors they do not currently cover, ie their Transatlantic deal.

A thought about DGIV in Australia, as well. OZEMY is currently very ingrained into the Austarlia market, naturally. I think it would be difficult for DGIV to really break marketshare and establish a presence there. Part of the reason I feel this way can be found in this news release by OZEMY:
biz.yahoo.com

<<SYDNEY, Australia, April 21 /PRNewswire/ -- OzEmail Limited (''the Company'') (Nasdaq: OZEMY - news), the leading provider of comprehensive Internet services in Australasia, announced today two major infrastructure initiatives. The Company has completed testing a T3 satellite link from the West Coast of the United States to its own Earth stations in Sydney, Melbourne and Brisbane. The Company also announced it is joining the Southern Cross Cable Consortium to acquire fibre capacity between the United States, New Zealand and Australia.

''Following deregulation of the Australian telecommunications marketplace last July, OzEmail is now developing an independent communications infrastructure, rather than being required to purchase bandwidth at considerably higher rates from telecommunications carriers,'' said OzEmail Chief Executive Officer, Sean Howard. ''Trans-Pacific bandwidth costs are a considerable component of our overall communications costs. Today, with the satellite link, we have the opportunity to reduce the costs of our international bandwidth by approximately one half,'' he said. ''When the Southern Cross Cable is ready for use -- which is currently planned for early- 2000 -- we believe we will experience a further substantial reduction in our
trans-Pacific bandwidth costs.''
Trans-Pacific capacity is a major cost for Internet service providers in Australia with most paying 19 cents per megabyte for their international traffic. >>

At those rates, it is tough to be competitive, and OZEMY has the inside lead to the cheaper route soon to be available. Also I do not think that OZEMY would be a fit for DGIV, rather their main competitor for the Asian markets.