FRANKLIN SEEKS NASDAQ UPGRADE.

Byline: Ben Sullivan Daily News Staff Writer

Westlake Village-based Franklin Telecom Inc. said Monday that it has applied to be moved from the Nasdaq bulletin board to the market's main board, reflecting the company's growth and investor interest in its Internet telephony business.

Franklin President and CEO Frank Peters said the application is part of the company's yearlong breakthrough to a higher level of legitimacy in the eyes of investors.

``We need to take Franklin to the next step for our shareholders,'' Peters said.

In particular, he said, moving to the Nasdaq big board would let institutional investors invest in Franklin that as a matter of policy do not invest in bulletin board companies.

Franklin makes computer network equipment for the telecommunications industry. Last week the company announced that WorldCom, which operates a global telecommunications network, has agreed to host Franklin's Internet telephony service. The deal will let Franklin sell Internet telephone service internationally.

Internet telephony, which uses the Internet to transmit voice, fax and other data across the Internet, is considered a fast-growing segment of the telecommunications market, though it currently accounts for less than 1 percent of U.S. telecom revenues.

Franklin shares closed up 3 cents Monday to $5.28.