Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: charles catlett who wrote (13722)	1/26/1999 6:17:00 PM
From: Grupo Brad	Respond to of 19331

Chuck, Nice to see a post from someone that has taken time. Believe me, Bill will want to be the "drum major" at the front of the parade when things come together. He'll also come on and say " I just like to pull some chains---I've been long DCTC all the time--Hope "Grupo" doesn't read this"!! Sound familiar---like a few days ago. Brad

To: charles catlett who wrote (13722)	1/27/1999 12:02:00 PM
From: Brian	Read Replies (1) \| Respond to of 19331

I'd like to think that I am pretty excited about the potential for this company, especially with the price sitting at $2.40. But there has to be something extra-extraordinary to occur for revenues to reach $2B. I will use the network of MCI WorldCom as an example here. WCOM has roughly 100 domestic switches in their network with roughly 60,000 ports per switch or 6M ports total for the whole network. On a pro-forma basis, they generate roughly $20B in revenue for domestic voice traffic only. I know we can't compare apples to oranges, but this ought to give us some pretty rough numbers as to what we need to reach that kind of revenue. If we want to achieve 10% of the revenue of WCOM, we need roughly 10% of the network or about 600,000 ports. Maybe we can whittle that down a litte. Let's say that at international rates, which can be up to 4 times the cost of US domestic, we need only 150,000 ports. Now let's look at the DCI network. We are currently at 640 ports and will soon be at 9152 ports. Somewhere we need to get another 140,000 ports. We also need switches. (This analysis will really be rough) Let's say we can get a switch for $1.5M that will handle 10,000 ports plus the cost to install a single port turnkey is $150 or another $1.5M. So we have $3M a switch that will handle 10,000 ports. With 140,000 ports needed, we will have to put out at least $42M for 14 additional switches. Actually, this number could be quite low as I don't have a firm number on switch costs. The number on port costs is pretty close, at least for the US. Costs in Europe could be more or less. Anyways, please join in help. Brian