A stat on billing costs for LD...

Tue Nov 26 19:39:49 UTC 1996

>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