From today's Communications Daily...
TUESDAY, NOVEMBER 26, 1996 VOL. 16, NO. 229Today:
[...]
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