Telco Communications Group Inc.

From the April 28, 1997 Washington Post

	'96 (in $ 000s)	% Change From '95
Revenue	428,552	99.0
Net Income	22,877	112.5
Rank Last Year: None

Description:
Telco Communications is a nationwide discount long-distance telephone company that leases calling capacity from larger carriers at wholesale rates and resells it to customers through its Dial & Save and Long Distance Wholesale Club plans. It owns a nationwide telephone switching network used to route its calls.

Business Resume: Contact Info -- 4219 Lafayette Center Dr. Chantilly, Va. 20151 703-631-5600 Main Business -- Telecommunications Founded -- 1993 Chairperson -- Henry G. Luken III President -- Donald A. Burns (CEO) Employees -- 655 D.C.-Area Employees -- 358

Developments:
Telco has emerged as a front-runner in the fast-growing discount long-distance market, offering connections at 15 percent to 50 percent below basic non-discount rates of AT&T and other industry giants. Customers reach Telco by dialing a five-digit access code before placing long-distance calls.

Since 1993, when founders Henry G. Luken III and Donald A. Burns launched the Dial & Save service, Telco's revenue has risen dramatically. It vaulted to $428.6 million in 1996, almost double the previous year's total.

The company went public in August, raising $77 million. Since then, its stock has climbed from $14 a share to more than $20 a share.

Telco plans to use the same strategy to enter local phone markets, an avenue opened to long-distance carriers by the Telecommunications Act of 1996. As of last month, it had received regulatory approval from 20 states and had applications pending in 14 more. It also plans a $170 million investment in a fiber-optic transmission system to replace its current leased connections.