What do Bill Gates, Craig McCaw, and AT&T have in common? Teledesic!!

Business Wire, Oct 2, 1995

PALO ALTO, Calif.--(BUSINESS WIRE)--Oct. 2, 1995--A soon-to-be-released study by Killen & Associates concludes that Bill Gates, Craig McCaw, and the new AT&T have positioned Teledesic, a joint venture, to meet the new telecommunications needs of electronic commerce (EC) customers.

The EC communications services market is expected to burgeon to $600 billion worldwide within 5 years.

"The company is staking a major claim to this next generation marketplace," stated Michael Killen, president of Killen & Associates. "Teledesic's services are aimed at emerging EC and multimedia customers -- not the mobile voice user. By the year 2005, the company plans to capture a $6.5 billion share of EC communications services revenues."

"Everywhere you turn, there are companies with aggressive plans for electronic commerce," Killen continued. "Bank of America, Bertelsmann (Germany), Hewlett-Packard, Mitsubishi (Japan), McDonald's, Procter & Gamble, and Credit Lyonnaise (France) are but a few of the thousands of companies committed today to electronic commerce as a means of reaching customers and increasing business."

Companies plan to use EC systems to enable "customer facing" -- presenting the customer with all the data, video, and sound multimedia information they need to make a buying decision.

"'One to one' selling, 'mass customization' marketing, and the matching of buyers and sellers globally is the name of the game. These new applications require telecommunications services that span the globe, offer high bandwidth, and facilitate multimedia communications. That is where Gates, McCaw, and AT&T come in, through Teledesic, their joint venture. Their strategy is to place a virtual fiber-optic network in the sky and around the globe to capture the new business," Killen concluded.

The Teledesic system will interconnect with the PTTs (public telephone and telegraph systems) in most countries as well as with key, large companies to transmit voice, data, and VCR-quality video traffic. "The opportunities are vast," Killen continued, "but so is the potential impact on financial services providers, merchants, and telcos. New opportunities will emerge for investors and providers of aerospace equipment and services."

The Killen & Associates study (a) explores emerging EC markets and applications, (b) analyzes market demand for digital broadband satellite services, (c) identifies potential customers for Teledesic's services, (d) examines Teledesic's strategic plans for marketing, technological innovation, competition, and financing, and (e) identifies opportunities and threats for emerging EC providers, including banks, CATV operators, financial services providers, merchants, aerospace companies, and telcos.

"Teledesic's Electronic Commerce Communications Services Strategy" will be released in early October.

For additional information contact Jules Street at tel. 415/617-6130, FAX 415/617-6140, (info@killen.com).

Killen & Associates, Inc. produces studies and executive video briefings that enable high-level executives and their teams to identify business opportunities created by advances in computer and telecommunications technology, changes in public policy, and dynamic forces in industry. Financial institutions, information services companies, and telcos around the world use Killen & Associates' studies and executive video briefings to seize emerging opportunities.

Recently published studies include "Electronic Commerce and MCI's Strategy: Impact and Opportunities," "Microsoft's Global EFS Strategy," "Payments on the Internet: Digital Money Takes Off Opportunities in Electronic Commerce" and "AT&T's Financial Services Strategy: Transactions Anytime, Anywhere." The company also recently produced a satellite TV video seminar, "Internet and Commerce: Markets, Applications, and Technologies," that features key presentations by financial and telecommunications executives from a number of leading companies, including Bank of America and Citibank.

CONTACT: Killen & Associates

Jules Street, 415/617-6130 or info@killen.com

FAX 415/617-6140