[6315] in North American Network Operators' Group
A stat on billing costs for LD...
daemon@ATHENA.MIT.EDU (Scott Huddle)
Tue Nov 26 14:44:48 1996
Date: Tue, 26 Nov 1996 14:39:49 -0500
From: Scott Huddle <huddle@mci.net>
To: nanog@merit.edu
From today's Communications Daily...
>TUESDAY, NOVEMBER 26, 1996 VOL. 16, NO. 229
>
>Today:
[...]
> Access Reform Addressed
>
> BIG PLAYERS SHAPE STRATEGIES TO ENTER COMPETITIVE MARKETS
>
> Telecom giants plan aggressive ad-intensive campaign next year
> to raid competitors' markets and expand beyond traditional base
> into untested territories, executives told security analysts at
> N.Y. conference. ... Bell Atlantic startled analysts by sharing
> financial model showing company expected 19% pretax margin from
> long distance entry.
[...]
> In model, Binford said that against long distance revenue it
> estimated charges of 28% for access, 20% marketing and sales, 19%
> transport, 6% billing services, 8% administration, customer care
> and fund for uncollectables. He said that left 19% in pretax
> margins.
Anyone thinking that billing costs are 50%+ of charges are
encouraged to short BA, as they are about to lose a bundle.
-scott
