ATC to rebound strongly, page-2

Hi Laurra,

With the FNT revenue, I am concerned. Much of this revenue appears to relate to wholesale capacity deals where the incremental benefit is actually much less than the revenue trends otherwise suggest.

Take, for example, travel agents - do they book as their revenue, the airfare sold, or the commission revenue earned by them on the sale?

I would be less concerned if all the traffic is switched via ATC's own switches. But that is not the case of FNT in the UK, and is largelynot the case of ATC in Asia (ie: where most of its traffic is switched via 3rd party carrier switches).

It is, therefore, not appropriate for us to criticse the way in which some USA and European companies are accounting for their revenue (ie: absolute, rather than the incremental component), and then to ignore our own local companies doing the same.

I am, therefore, much more interested in ATC /FNT's true (ie: incremental) revenue position, rather than in their gross numbers which, by all accounts, is upwards of 90% not theirs.

Going forward, this is something that ATC will need to clarify in order to ensure transparency of their operations.

I am looking for real, not assumed, revenue.

ATC, therefore, still has some way to go before they come up to this standard.

As for a China Mobile connection, I doubt this occurring given particularly the political and economic connections of China Mobile (both in Beijing and in Hong Kong).