Show BABSON'S FACSIMILE TRANSMISSION IN BUSINESS By Babson's Reports Incorporated Incorporated Incorporated Wellesley Hills Mass The The sending of information in printed form or handwritten ten over microwave satellite radio or privately leased telephone telephone tele tele- phone lines lines facsimile facsimile transmission trans mission mission has has long been used by newspapers wire services magazines and government bureaus However the recent development of simpler units over which data can be sent and received over the ordinary ordinary ordin ordin- ary public telephone system for the cost of a regular telephone telephone tele tele- phone call caU plus equipment rental charges opens up an entirely new and promising area for business information Babson's Baboons Reports expects an explosive growth In time comparable comparable com com- para parable ble to the office copier boom i The M Market k B Because Because caus of technological technological breakthroughs in the form of the Transceiver a combination combination atlon transmitter receiver and a which can provide automatic answering there is an almost unlimited range of applications from engineering engineering en en- drawings medical records criminal identifications identifications to simple letters and customer orders In addition the declining costs of transmission trans mission from six to three minutes minutes min min- utes and soon to one minute of time plus the drop in rental rental rent rent- al charges to as low as 65 monthly open up a vast mar mar- ket keto At present there are fewer fewer few few- er than facsimile systems systems terns in operation but only of them are currently for business correspondence Industry Industry In In- estimates look for the sale o of at least units within the next three years and one fledgling manufacturer er sees a total market of machines during the next 10 years The Franchisee Network A service or ancillary network net work has sprung up where individuals individuals in in- and companies not owning the necessary facsimile ile lIe equipment can send their documents at a charge ran rang ranging ranging rang rang- ing from to per page Already several companies companies com com- have set up operation These firms lease or buy the various various' facsimile equipment now on the market and in turn license franchised operators operators oper oper- who open up different locations and pay royalties to the parent service networks It was estimated that as of last September some machines ma ms chines were in operation but that more than units would be needed in the future Babson's Reports believes the creation of these satellite bureaus bureaus bur bur- could give a dynamic stimulus to the up to now nascent industry Investment Opportunities There are several major companies producing facsimile transmission systems and a growing number of smaller but distribution distribution- distribution and resource resource- limited newcomers It was Magnavox in 1966 that introduced intro intro- a single low cost unit and started the movement for business business' applications Magnavox Magna Magna- vox makes and sells seUs the device device de de- vice but has given Xerox a non exclusive royalty bearing license to produce a similar machine Another major company company com com- pany Multi Multi- graph Is planning to introduce its own version n by the end of 1969 One service network Is already preparing to offer its securities publicly but its success suc success suc suc- cess will depend on adroit mar Two Recommendations Babson's Reports is recommending recommending mending Multi graph and Magnavox for purchase purchase pur pur- chase primarily for their competence and success in their respective industries Magnavox's pioneering efforts in facsimile transmission began began be be- gan with its early entry into document storage and retrieval retrieval val and remote copy equip equip- ment It is believed that Magnavox Magnavox Mag Mag- na vox along with Xerox is probably one of the few companies com corn panics making money in facsimile facsimile fac fac- simile transmission equipment with ith revitalized management has a solidly based office equipment mix M A-M enjoys a aI I prestige position in the field and has developed several new highly promising types of cop cop- duplicator ier-duplicator equipment Its facsimile device is expected to be marketed marketed mar mar- in last 1969 or early 1970 and could readily contribute to earnings soon thereafter Both companies offer investors a position in growing segments segments seg seg- ments of our economy |