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Microcap & Penny Stocks : FNet=Internatl Voice/Fax/Data&Video Services ViaInternet -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (301)	6/7/1998 7:58:00 PM
From: george willse	Respond to of 609

Frank - You make some very good observations. As you point out, the direction FNET/FTEL takes determines the immediate/long term cost and ROI. In my #4, I was referring to a complete physical implementation of the minimum 250 sites (which requires 'n' number of DVGs, etc.). This will cost between $35 and $100 million. The range is very wide because I do not have the costing on a per site basis, although I am sure it is in FNET's business plan that is presented to the potential Tier 1 investors. As far as the $7 million, we have to remember that FTEL/FNET is losing money at this time, and at least part of those funds are probably going for operating costs. Increases in head count increase payroll costs, and manufacturing expansions increase fixed costs. What I see the $7 million doing right now is funding the initial 8 or so installations and keeping the companies going. For #5, I think we are both in agreement. The bottom line here is that the major world wide telcos are not sitting on their thumbs waiting for the small innovative companies to steal their primary business. They are buying and merging mercilessly now to position themselves strategically and technically. As investors at this point we can only sit and watch and hope the company executes in a timely manner so that we don't lose our investment. Waiting for the next major news/event, George