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IS 900 SERVICE DEAD? MOST MISMANAGED NETWORK IN TELEPHONE HISTORY WHAT'S NEXT?

 NEW YORK, Dec. 1 ~PRNewswire~ -- New Networks Institute of New York, in conjunction with Probe Research, Inc. of Cedar Knolls, N.J., both telecommunications research firms, today announced the release of "New Network Services: 500, 600 and (asterisk)100", a report from the five- part study "10 Years Since Divestiture: The Future of the Information Age."
 This report proposes the creation of three new telephone services based on the area codes 500, 600, and (asterisk)100, analyzes the current issues surrounding 900, and sets forth a plan for restructuring telecommunications regulation.
 "900 Service was the most mismanaged telecommunications introduction in history. It is the first service to have revenues decrease almost 50 percent in one year (1992), and they are not expected to grow," according to Bruce Kushnick, president, New Networks Institute.
 "While 800 and 900 satisfy specific business needs, our research shows an untapped demand for new services and new options," Mr. Kushnick added.
 "Special Report On 511" has been included and it details the status of three digit services, including the pioneering efforts of Cox Enterprises to create 511 (like 411), current regulatory issues, tariffs, pricing, and proposed FCC rulemaking.
 "This is the definitive study on 511," stated James McKnight, vice president, telecommunications, Cox Enterprises.
 The proposed services are:
 -- 500: The Postage Stamp Network: A Split Cost Caller And Sponsor Paid Network Service: 500 is designed as a low cost service (under 50 cents) to the caller, with the remainder of sponsor costs adjusted as either an expense or a "call credit." Its primary applications are nationwide polling, information services, and lead generation.
 "I believe that low cost caller paid services, such as "The Postage Stamp Network" represent the most immediate growth potential of any nationwide service proposed to date," states Brian Rivette, vice president, marketing, Call Interactive, an American Express affiliate.
 -- 600: The Direct Response And Transactional Network: A Billing Network: This billing, transactional, and potential bank debiting service, will allow a sponsor to set variable prices for a product or service, with the charge for that product appearing on the phone bill, and revenues paid to the service provider. While similar to 900, this network service will include specific safeguards designed to avoid 900's problems. Primary applications include fund raising and subscription ordering.
 -- Revenues for 500 and 600 are projected to be $1.8 billion in five years.
 -- (Asterisk)100: The "Asterisk" (Star) Network: (The Forever Phone Number) An Enhanced Services Network: This service gives an individual, company, or family a "life long" telephone number, which can be used regardless of their location. It will be accessed by the alphanumeric "asterick" (star) as the first digit, replacing the "1", as in "1-212-837-7867". This service has been designed to alleviate problems with other "follow me" offerings, such as AT&T's 700, and some regional bell offerings.
 -- Revenues for (asterisk)100 are projected to be $1.3 billion in five years.
 -- A New Cabinet Level Government Agency For Communications: Because of the issues surrounding 900 and other telecommunication services, the institute is proposing a new cabinet level government agency which includes a restructured NTIA and Federal Communications Commission (FCC). It can be funded by divesting Bellcore, an organization owned by the Regional Bells, and removing duplicative state and national work. This new agency would plan and manage future growth, coordinate state and national regulation, and centralize and handle complaints for all services, including telemarketing.
 Probe Research Inc. is internationally recognized as a leader in expert-in-depth strategic analysis, news on telecommunications, management and processing technologies and markets.
 Bruce Kushnick is one of the leading telecommunications analysts. Mr. Kushnick founded New Networks Institute with primary objective to explore new directions and offer potential solutions to reshape communications in America.
 "New Network Services" is available today, costing $895.000. For more information, please call Bruce Kushnick at 212-837-7867. For sales information, contact Chuck Sheppard at Probe Research, 201-285-1500.
 -0- 12~1~92
 ~CONTACT: Bruce Kushnick of New Networks Institute, 212-837-7867; or Chuck Sheppard of Probe Research, 201-285-1500~


CO: New Networks Institute; Probe Research, Inc. ST: New York, New Jersey IN: TLS SU:

SM-LR -- NY010 -- 2307 12~01~92 10:01 EST
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Date:Nov 30, 1992
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