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Technology Stocks : Alphanet Telecom, WOW ! -- Ignore unavailable to you. Want to Upgrade?

To: wynn quon who wrote (95)	8/7/1998 10:48:00 PM
From: wynn quon	Read Replies (2) \| Respond to of 117

Alphanet and the future of the long-distance telephone market. As a followup to an earlier posting - what evidence is there that Alphanet will have it's work cut out for it? Some good articles that summarize what's happening in the telecoms industry: zdnet.com This article describes the international long-distance settlement system and how prices will plummet within a few years. The consensus is that voice-over-data's price advantage is unlikely to last more than 2-4 years. One tell-tale sign that the business model is starting to crack is the surprising fact that phone company long-distance prices between the US and the U.K. are now lower than voice-over-data prices. teledotcom.com This one describes the big players getting into voice-over-data in the U.S. - AT&T, Qwest, IDT among others - all with deep pockets and aggressive plans. Granted these are American examples but where the US goes, Canada follows. We don't have to look far to see how the story is going to unfold in Canada: In this week's (Aug 10)Macleans magazine telecom supplement(of all places), the CEO of AT&T states that they have plans to offer voice-over-data services within one to two years. The forces at play are inexorable and Alphanet is likely to be caught in a vise. On the one hand, falling international long-distance prices. On the other, big players entering the market to protect their turf. What are the odds of a small player like Alphanet thriving in this environment? Success will go to the companies with the economies of scale that are needed to wring profits out of paper-thin margins.