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