1. Telecom Industry: History of the Future –RBOCs are big early winners gaining upto 20% market share in long distance while losing only 3-5% share in the local telephone. –AT&T is the biggest loser –Companies invest heavily in R&D and infrastructure 0-2 years

2. Telecom Industry: History of the Future –RBOCs and AT&T lose substantial market share in their core business (15%-25%), –AT&T makes decisive inroads in local telephone, gain up to 30% local telephone marketshare in key metropolitan areas –Online service demand explodes almost doubling each year –RBOCs customer loyalty withers away in 24-30 months –CAPs (competitive access provider) and cable companies become increasingly competitive due to unbundling products –AT&T and MCI skim the cream with one-stop shopping accounting for up to 50% of the profits 3-5 years

3. Telecom Industry: History of the Future Size of the US market $1.3 trillion and $3.5 trillion worldwide AT&T and MCI sets new rules of the game Online service demands open up many foreign markets Mergers and acquisitions continue to shape the Industry GM controls 30% of wireless communications and upto 15% of semi-conductor markets AT&T and Microsoft join hands and emerge as biggest winners collecting tax on every bit transmitted around the world 5 - 7 years