PHONE MONOPOLIES TO CRUMBLE
FOR YEARS, THE MOST SECURE, LONG-RANGE INVESTMENT WAS TELEPHONE
COMPANY STOCK. FOR MORE THAN 100 YEARS THEY HAVE HAD AN EXCLUSIVE
FRANCHISE TO THE BEST "MONEY-TREE" IN TOWN. THAT ECONOMIC FORTRESS IS
ABOUT TO CRACK.
U.S. SPRINT, THE "NEW" PHONE COMPANY, IS LEADING THE WAY WITH
THEIR LATEST MOVE: SELLING THEIR ENTIRE "OLD-TECHNOLOGY" MICROWAVE
$1.7 BILLION CONTINENTAL PHONE SYSTEM. WHY? THEY ARE GOING ALL-
DIGITAL, FIBRE-OPTICAL ... AND FAST.
ALREADY 70 PERCENT OF THEIR TRAFFIC HAS BEEN SHIFTED TO THEIR
NATIONAL FIBRE-OPTIC NETWORK, AND, WITHIN 60 DAYS, THEY WILL BE
HANDLING 90 PERCENT OF THEIR TRAFFIC VIA THIS NEW, STATE-OF-THE-ART
SYSTEM. THEIR PRICES ARE ALREADY AMONG THE LOWEST.
THEIR "OLD" SYSTEM, BUILT WAY BACK IN 1984 -- WITH SOME CAPITAL
IMPROVEMENTS MADE JUST LAST YEAR -- IS THE PERFECT EXAMPLE OF JUST
HOW FAST YOU HAVE TO MOVE IN THIS NEW AGE MERELY TO KEEP UP WITH THE
TECHNOLOGY. SO IF YOU NEED MORE THAN 400 MICRO-WAVE RELAY TOWERS,
9,670 MILES OF ANALOG AND DIGITAL TRANSMISSION ROUTES COMPLETE WITH
EARTH STATIONS, REPEATERS, JUNCTIONS AND END TERMINALS AND HUNDREDS
OF LEASED AND OWNED REAL ESTATE SITES, GIVE U.S. SPRINT A CALL.
WHY IS THIS IMPORTANT TO YOU? CONSIDER THE REGULAR PRICE
INCREASES WE ALL GET FROM OUR PHONE AND CABLE COMPANIES. THEY ARE
ALL USING OLD TECHNOLOGY. SOME OF IT IS REALLY OLD -- LIKE 50 YEAR
OLD MECHANICAL SWITCHERS. WITHIN A FEW YEARS NEW COMPANIES WILL
POSSIBLY OFFER TO COMPLETELY REWIRE ENTIRE CITIES WITH FIBRE-OPTIC
CABLES. THEIR BIG SELLING POINT? OFFERING NOT TO RAISE PHONE OR
CABLE RATES FOR SEVERAL YEARS IF THEY CAN OPERATE IN YOUR
MUNICIPALITY! THEY WON'T EVEN ASK FOR AN EXCLUSIVE MONOPOLY! THEY
WILL ALSO OFFER FREE A HOST OF NEW SERVICES SUCH AS TELESHOPPING,
TELEBANKING, AND ACCESS TO COMPUTERIZED LOCAL DATA BANKS. THEY WILL
PROVIDE MORE THAN 200 CABLE CHANNELS, MANY INTERNATIONAL, FOR LITTLE
MORE THAN THE CURRENT COST FOR 25. THEY CAN AFFORD TO DO THIS BECAUSE
THEY WILL HAVE HUNDREDS OF OTHER "CHANNELS" TO SELL TO BUSINESS.
CHANNELS THAT CAN CARRY VOICE, DATA AND VIDEO CONFERENCING
SIMULTANEOUSLY AT VERY COMPETITIVE RATES.
WHEN THEY ANNOUNCE SUCH AN OFFER PUBLICLY YOUR LOCAL COUNCIL WILL
RECEIVE SO MUCH PRESSURE FROM YOU AND YOUR NEIGHBORS, THAT THEY IN
TURN WILL HEAT UP PROVINCIAL AND FEDERAL CABINETS. THOSE POLITICIANS
WILL THEN BE FORCED TO REMOVE ONE OF THE LAST REMAINING INDUSTRIAL
AGE MONOPOLIES: THE PHONE COMPANY. IT HAS ALREADY PARTIALLY HAPPENED
IN THE U.S.A. IT WILL EVENTUALLY HAPPEN WORLDWIDE. REMEMBER YOU
READ IT HERE FIRST.
FOR FURTHER INFORMATION:
WOOD KINNARD,
DIRECTOR OF STRATEGIC PLANNING,
U.S. SPRINT CORPORATION,
#800, 9300 METCALF,
OBERLAND PARK, KANSAS 66212.
TEL 800/548-4825.
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