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To: Gordon B. Taplin who wrote (6547)	5/16/1998 9:34:00 AM
From: RocketMan	Respond to of 50264

I don't know, but according to Roger Templeton, "Digitcom should not suffer ill effects as a result of the Indonesian people's political adjustment to the rationalization of their economy. Digitcom's recent agreement to purchase an Indonesian telephone company with assured revenues from PT Telekom vests our interests in basic infrastructure, with a secure income from a source that must be counted as among the most stable in the nation." (my emphasis) Now, add to this the following facts: -- the 50M Indonesian contract ensures a 10-year revenue stream, and the political upheaval is expected to last weeks, or months at the most. -- the stock DID NOT RUN UP from that Indonesian contract announcement. We added 50 cents, and gave more than that back. So our price level STILL refelcts ONLY last year's positive revenues and the international presence we are establishing in many other countries: Australia, VIetnam, Phillipines, European countries, Russia, Mordovia, the Middle East. I think the big money is still awaiting the SB-10 due in two weeks. -- International telcoms establish presences in dozens to over 100 countries. At any one time one or more of these are undergoing upheavals. That is the nature of international investing. -- Digitcom is NOT an international company, it is a US company with INTERNATIONAL business. -- Companies with assets in Indonesia would be affected much more than digitcom. IBM with computers there, GoodYear with tire plants, or whatever. We are investing in comm infrastructure, which is much more secure. Ever try to disrupt an undersea cable? Or a satellite link? Remember during Desert Storm when Iraq was being pounded and yet we could sit in front of our TV and watch everything going on? THat's becuase it is very difficult to take out a complex comm network. People will always communicate, especially during crises. Otherwise they would have to go live in caves. Heck, the biggest money maker from this current upheaval might be CNN sending back pictures. I wonder if any of that traffic is going through digitcom gateways? I am not trying to downplay the problems in Indonesia. However since the news always play up the negative, I am only trying to point out that the glass is much more than half full -- hell it is just about all full IMHO. Here are some selected excerpts from a story in this morning's Washingtom Post that has positive comments. It is easy to gloss over these when you read a bunch of negative stuff: "Most companies contacted by a reporter said they were only temporarily suspending operations in Indonesia. None had plans to close down and get out for good. Despite its current problems, foreign corporations see tremendous growth potential in Indonesia, which is the world's fourth most populous country, with 200 million people and an enormous wealth of oil and other natural resources." "Most of the foreign companies we talk to are looking at this crisis as an opportunity," "Nobody doubts that Asia is a growth market in the next 20 to 30 years," a spokesman said. "With a change in government, the foreign companies we've been talking to feel they might be able to help shape the new business environment, especially in a country that is on its back," Broadfoot said. "Officials may be looking for ways to handle infrastructure investments, telecom," he said. "Before, companies were told: 'Get into bed with this guy and he'll get you your license.' But now maybe a new government would try to figure out how to reorganize the telecom industry to rebuild investor confidence." (remember what we were saying about Digitcom profiting from the deregulation of the telecom business?)

To: Gordon B. Taplin who wrote (6547)	5/16/1998 10:29:00 AM
From: Lazarus Long	Read Replies (2) \| Respond to of 50264

Good morning Gordy... Glad you asked that question - forced me to go back and look over the info I had been gathering for a while now. I am also taking the opportunity to put it all out there for any newbies we might have on the thread. Gets me tingly all over... :-) I don't know that anybody on this thread can tell you EXACTLY how much of our future is vested in Indonesia, but it certainly is not an amount that can be ignored. The problem is that figures haven't been released on a lot of this stuff. Furthermore, sometimes the figures are released as guaranteed minutes and sometimes as guaranteed revenues. (I do like the ideas of the guarantee though <g>). In Indonesia, we have the following: - A telephone company (PT. Erakomindo Peranusa) with a guarantee of $40-50M net (that's as in NET) revenue over a 10 yr period. The guarantee comes from Telkom. It also provides the basis for future agreements and services. - An internet service provider (deal should be getting close to completion by now) in PT. Primedia ArmoEkadata Internet. No numbers were released for this deal, but the company carries ISP licenses. It appears that Digitcom has the sole ISP role in Indonesia, with no further Internet Service Provider (ISP) licensing on the horizon. Elsewhere, we have the following (already announced): - The previously established U.S. business. - An agreement with Mordovia to terminate long distance traffic: switched (including line and satellite) and internet traffic. The target is to reach 1 million minutes a month within 12 months. If that is met, the agreement is to be extended for another 5 years. - Closures of deals with the 2nd and 7th largest telecom providers in the Russian Federation are expected for this quarter (we are now past the 1/2-way point). Letters of intent have been signed with each provider and the deals will take the form of joint ventures. - An agreement with Louis International to provide U.S. lines and termination for Louis'traffic originating in Europe. Louis is committed to bringing $1M per month in in traffic to Digitcom. The traffic is to commence within 90 days of signing - we are probably within a month of that deadline. - We have established a Point of Presence (POP) in Australia that links the Australian backbone to terminal in L.A. and S.F. in the U.S. So, if you look at our current situation (right now) a very large portion of revenues come from Indonesia. The Indonesia services are the only new deals currently in effect, worst case. Mordovia could very well be providing revenue. European traffic is slated to begin in ~6 weeks, worst case. Also, by the end of the quarter, we should see the form that services to the Russian Federation will take. As to the future, it appears that we have contract negotiations going on in many countries in the middle east and Vietnam and the Phillipines (the closer, Jimmy Chin, has appeared in the latter two - very promising!). And lastly, as Macker is very fond of pointing out, look to SOUTH AMERICA! I don't think I've seen all this put together in any post before, so I hope it helps! Lazarus P.S. See Rocketman's post (while I was writing this) about the (insulated) vulnerability of Digitcom's assets in Indonesia. It is a very important point!