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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Ken Salaets who wrote (13004)	12/21/1998 11:37:00 PM
From: Steven R. Bergman	Read Replies (2) \| Respond to of 19331

All, It's quiet tonight, so I thought I'd paste a post from another thread. I have no comment on the following article, just putting it here as an FYI. ~~~~~~~~~~~~~~~~~~~~~~~~~~ Call pricing trend 'puts telecoms groups at risk' MONDAY DECEMBER 21 1998 Telecoms By Alan Cane Europe's new telecommunications operators face devastation if current call pricing trends continue, a report to be published this week warns. Carried out by Analysys, a Cambridge-based consultancy with an international reputation for tariffing studies, it says a pricing environment is developing rapidly which will prove highly unfavourable for western European operators. Andrew Entwistle, Analysys principal consultant said: "The European industry cannot survive at the price points for which it is heading." He pointed to the German market, where Deutsche Telekom is cutting long-distance prices by more than 60 per cent in an attempt to regain the 20 per cent or more market share lost to new competitors. Prices of international and long-distance calls have been falling sharply in most European countries over the past few years. This has been a consequence of liberalisation, which has seen more than 200 new operators authorised to provide voice services in the EU. The collapse of international call prices has forced large global telecoms alliances, including Global One, to review their business plans. Simon Sherrington and Michael Denmead, authors of the Analysys study, claim pricing is sliding out of control because of a loss of market discipline in a growing number of markets, especially in the long- distance and international sectors. They say: "International and long-distance call prices are likely to continue to fall rapidly over the next two to five years until there is only a small cost-orientated premium over local call charges. This is a bleak outlook for any operator requiring a 5- to 10-year return on capital employed." They predict substantial consolidation in the industry with only a few newcomers progressing to the point of a profitable exit from the business. New Network Operators in Western Europe; Two vols: £1,250. Electronic version £1,495. Analysys, Suite 2, First Floor, Quayside, Cambridge CB5 8AB. Tel: 01223 341300.