New Product Idea

Michael C. Brannigan New Product/Idea/Service 25 Jul 00

Title: Telecommunications Sector - The Best Investments for 2000

General Purpose: To persuade

Specific Purpose: To persuade listeners to invest in telecommunications companies, particularly in the areas of optical and wireless networking.

Primary Audience Outcome: I want the audience to be convinced that there is an extremely large market for telecommunications equipment, especially in the area of optical and wireless technologies, because of the increasing demands for bandwidth and mobility respectively.

Contributing Audience Outcomes:

1. Believing that the demand for increased bandwidth and mobility will create an excellent market for telecommunications equipment.

2. Believing that telecommunications stocks are the hottest stocks on the market and that return on investment is still increasing due to the growth of the market.

3. Believing that the optical and wireless alternatives are the hottest of all telecommunications technologies.

4. Believing that if they buy telecommunications stocks they will profit.

Thesis Statement: Carriers are outgrowing their current infrastructure due to increasing internet use. Optical technologies are being deployed throughout the network backbone to accommodate for increasing demand for bandwidth. The need for mobile access to the internet is increasing equally as fast. The markets for both optical and wireless networking technologies are going to explode in the next few years. Investors who buy stocks in these areas will stand to make a large profit.

Introduction:

Attention: How many of you like to gamble? Raise your hands... And of those that like to gamble how many of you wish that you could get insider information about a "sure thing"... a bet that can't lose?

Experience: others

Psychological: I have some information for you that will help you invest your money in such a way, and it's no secret.

Experience: self

Logical: The network infrastructure that exists today will be unable to support internet traffic a year from now. With this rate of growth telecommunications equipment is being developed and deployed at the speed of light to accommodate growing demands. There is such a large market for this equipment that telecom companies are sprouting up everywhere and the industry can't get enough of them.

Preview:

To persuade people that investing in optical and wireless networking equipment vendors will be highly profitable.

1. Explain what position telecommunications stocks have in the market.

2. Introduce the hottest areas of telecommunications.

3. Give a brief overview of how and why the market will grow.

4. Present some of the biggest players on the market today.

Body:

I. The Numbers Don't Lie - Telecommunications is Hot!

A. Telecommunications industry has had highest number of IPOs in the first two quarters of 2000.

B. 8 out of the top 10 companies listed for best returns from the second quarter 2000 were telecommunications companies (See table Best Returns).

C. Telecommunications companies have shown incredibly profitable first days (See table Biggest First Day Jumps).

D. CEOs of these companies are very happy. See table Happy CEOs - notice that 5 out of 10 Happy CEO companies are telecom, and that the average age of the CEOs is 41. These people are getting very rich very quickly. Optical Networking is at the top of the list.

E. Average P/E ratio for telecom has skied over blue chip stocks in the last four quarters (See chart The Rich Keep on Getting Richer).

F. Overall the value of telecom equipment