IRA Ideal!
Defined Asset Funds[SM]
CONCEPT o SERIES
Tele o Global Trust 4
IN TOUCH WITH PROGRESS . . .
ON-LINE FOR GROWTH
[ML logo] MERRILL LYNCH
In Touch With The Future
LOGO
o A business woman e-mails her office. Her message is
instantly beamed across the ocean.
o A concerned father checks on his child. He puts his car
phone on speaker.
o A student works on a term paper. Most of the research is
downloaded from the internet.
From the fast-paced world of business, to the way a family
keeps in touch, our lives have been changed by astounding advances in
communications. More than a century ago, Samuel Morse gave us the telegraph
and Alexander Graham Bell changed our lives with the telephone. Since that
time, progress in telecommunications technology, along with an expanding
demand, have created an industry that has become increasingly attractive to
investors. Favorable domestic regulatory trends, technological advances, and
growing global potential continue to brighten the outlook for these stocks.
Introducing Tele o Global Trust 4
On-Line For Growth
From cellular service to video-conferencing to e-mail --
communication methods are increasing at a startling pace. The Tele o Global
Trust 4 offers an opportunity to participate in the communications revolution.
This two-year Trust seeks capital appreciation by investing in
telecommunications companies we believe are well-positioned to benefit from
industry globalization.
Defined Portfolio
Because this is a Defined Asset Fund[SM] you know in advance
what you're buying. This preselected portfolio of companies should remain
relatively unchanged for the life of the Trust. And since this one investment
gives you access to 36 telecommunications companies, there's no need for
multiple stock purchases. Just one easy price to track -- which you can
follow each week in Barron's.
Professionally Researched
Our experienced research analysts used an extensive screening
process to determine which stocks should be included in the Portfolio. The
process used to screen the stocks included:
o identifying telecommunications companies which they believe
have growth potential over the next two years;
o performing thorough financial analysis including the review
of each company's operating history, balance sheet and cash
flow to determine credit quality; and
o reviewing the stocks for liquidity, market share and
timeliness of purchase.
Why Telecommunications?
Favorable Regulatory Trends
Recent U.S. legislation has brought a host of opportunities to
telecommunications, enabling telephone companies and cable providers to cross
their traditional service boundaries and offer multi-service packages. Now
cable companies can connect phone calls, local phone companies have entered
the long-distance arena, and both local and long-distance phone carriers
can broadcast to televisions.
As the breadth of products and services continues to expand, so
do the potential benefits to consumers and investors.
Global Opportunities Abound
Although the Trust consists mainly of domestic stocks, 37% of
the Portfolio is concentrated in telecommunications companies from other
countries that seem poised for growth. It is anticipated that the
privatization of telephone companies that were once government-owned will
continue. Privatization has had a favorable impact on the profitability of
some foreign telecommunications companies.
Technologically Friendly
Adding a second telephone line for your modem, buying a pager
for your teenager, getting a cable hook-up to catch the latest movies and
download computer files . . . these services create common demands: hardware
and service systems for transmission.
Telecommunications equipment manufacturers are expected to
profit as consumers place increasing demands on service providers, which in
turn will continue to retool their own systems to meet rising demands.
<TABLE>
Evolution Of Telecommunications
A look at the historical points that have shaped the new world of telecommunications.
1884 1876 1925 1965 1966
<S> <C> <C> <C> <C>
Samuel Morse Alexander Bell Labs "Early Bird" is Development
sends Graham Research the world's of silicon
his historic Bell's first produces the first first chip makes
telegraph telephone talking motion commercial computers
message, call -- "Mr. pictures. communica- smaller and
"What hath Watson, come tions satellite. much faster
God wrought?" here, I want
you."
<CAPTION>
1972 1990 1996 1998
<S> <C> <C> <C>
FCC opens up Cellular Landmark Lucent introduces
domestic phones telecom- 400-gigabit fiber-
satellite trans- grow in munications optic cable that can
mission. popularity. legislation transmit the
passed. equivalent of
90,000 encyclo-
pedia volumes per
second!
</TABLE>
A Defined Portfolio
Company Symbol Research Evaluation
BELL REGIONALS
Bell Atlantic Corporation BEL Because of its 1997 merger with
NYNEX, it has over 40 million
access lines and over six million
wireless customers worldwide, Bell
Atlantic expects to derive long-
term earnings and dividend growth
from continued expansion of world-
wide operations.
BellSouth Corporation BLS Growth through sound overseas
investments and fast-growing
domestic properties is expect to
continue.
SBC Communications, Inc. SBC SBC's domestic growth, coupled with
developing international
investments, is expected to
contribute to good earnings and
dividend growth.
U.S. West, Inc. USW Geographic diversity and low
population density in its market
areas has led to a reduced threat
of competition. U.S. West offers
an attractive dividend yield with
good earnings and dividend growth
resulting from continued solid
access line growth.
INDEPENDENTS
Aliant Communications, Inc. ALNT Diversified interests include
local, long-distance and wireless
services as well as communications
equipment for businesses. Good
earnings growth from access line
and wireless customer expansion is
expected.
ALLTEL Corporation AT Operations include wireline and
wireless properties, long-distance,
directory publishing software.
Non-telephone businesses and
continued strong telephone and
wireless revenue are expected to
contribute to future growth.
Century Telephone CTL Provides a wide range of
Enterprises, Inc. telecommunications services
including local exchange, wireless,
long-distance and internet access.
Revenues and income are expected to
increase due to continued revenue
and income growth from its wireless
and wireline operations.
LONG-DISTANCE
AT&T Corporation T As the world's largest long-
distance communications network,
earnings growth is expected to
continue.
Frontier Corporation FRO Frontier's revenues have been
growing at an accelerated pace as a
result of acquisitions and internal
development. Continued growth is
expected to result from its
acquisitions.
Sprint Corporation FON The nation's third-largest inter-
exchange carrier, also provides
local exchange, wireless and
internet services. Future earnings
growth will be fueled by good
revenue and customer growth in all
sectors.
WIRELESS
AirTouch Communications, ATI With businesses in the U.S. and
Inc. abroad, this wireless industry
leader has strong revenues and
earnings growth potential.
TELECOMMUNICATIONS EQUIPMENT
ADC Telecommunications, Inc. ADCT ADC places a strong emphasis on
manufacturing fiber optic video
transmission systems used by both
cable and telephone companies.
International sales offer a
significant opportunity for new
customer expansion.
Aspect Telecommunications ASPT Because of a strong position in the
Corp. call center market, coupled with
improving gross margins, Aspect
expects revenue and earnings
growth.
Harris Corporation HRS A diversified product portfolio and
expanding communications operations
should create continued growth for
this global corporation.
Lucent Technologies, Inc. LU The leading supplier of
telecommunications infrastructures
in the U.S. and number-two
globally, Lucent is well-positioned
with European, U.S. and Asian
standards of digital wireless
technology.
PairGain Technologies, Inc. PAIR Growth is expected to continue as
telephone companies deploy high
speed digital subscriber line (DSL)
technology worldwide.
QUALCOMM, Inc. QCOM As a leader in digital wireless
technologies, earnings growth is
expected as wireless systems around
the globe deploy digital
technologies based on its Code
Division Multiple Access (CDMA)
standards.
Scientific-Atlanta, Inc. SFA Scientific-Atlanta expects positive
earnings growth as the demand for
its cable products intensifies by
the convergence of cable and
telephone.
Symbol Technologies, Inc. SBL Growth is expected as the company
continues to capitalize on
technology development and expand
its telecommunications distribution
network.
Tellabs, Inc. TLAB Growth is expected through
worldwide product demand from
telecommunications companies
upgrading wireless and wireline
networks.
TELECOMMUNICATIONS NETWORKING
Cisco Systems, Inc. CSCO As the world's leading supplier of
high-performance, multimedia,
multiprotocal and internetworking
solutions, it is well-positioned
for future growth with strong
earnings attributable to increased
unit sales of its products.
3Com corporation COMS A leader in networking solutions,
3Com should experience strong
growth as networking and the
internet become household words
worldwide.
Fore Systems, Inc. FORE Global leader in networking
products based on Asynchronous
Transfer Mode (ATM) technology.
Growth should continue as it widens
its customer base.
INTERNATIONAL (ADRs)
British Telecommunications BTY A leading provider of
PLC(*) telecommunications services.
Increased demand for services,
global alliances and the internet
should result in future growth.
Cable & Wireless PLC(*) CWP Serving more than 50 countries of
five continents, earnings are
expected to increase as the company
increases its global presence.
ECI Telecommunications Ltd. ECILF ECI has demonstrated strong revenue
growth for 40 consecutive quarters
and longer-term earnings growth is
expected as solid sales continue.
Telefonaktiebolaget LM ERICY As an international leader in
Ericsson(*) telecommunications products and
electronic defense systems, strong
earnings growth is expected from
wireless technologies as foreign
companies build these systems, and
the wireless systems are deployed
worldwide.
France Telecom S.A.(*) FTE The world's fourth-largest
telecommunications carrier, its
earnings are expected to grow
through domestic and international
expansion.
Nokia Corporation(*) NOKA The world's second-largest
manufacturer of wireless phones,
Nokia expects strong earnings growth
as cellular systems throughout the
world expand or build out their
infrastructures.
Northern Telecom Limited NT This leading equipment supplier
expects to grow from its product
and market diversification.
Portugal Telecom S.A.(*) PT The company's earnings growth is
expected to be driven by strong
development in wireline, wireless,
internet and cable TV services.
KPN NV(*) KPN KPN has a fully digital
telecommunications network
throughout the Netherlands. Growth
will be derived from domestic
properties and investments abroad.
Tele Danmark A/S(*) TLD Earnings growth is expected to
increase through international
telecommunications service
projects, and expansion of wireless
and interactive capabilities of its
cable TV network.
Telecom Italia S.p.A.(*) TI As the sixth-largest
telecommunications operator in the
world, wireless operations will
continue to see expansion. Telecom
Italia is positioned for strong
earnings growth as it capitalizes
on steps taken to date, and
continues to seek foreign
interests.
Telefonica S.A.(*) TEF A diversified global
telecommunications company.
Telefonica has focused on
international expansion primarily
in Latin America. Earnings growth
may be fueled by international
investments.
Vodafone Group PLC(*) VOD Vodafone is well-positioned for
growth as it continues to dominate
the U.K. wireless market. Its
anticipated earnings growth is
expected to result from wireless
acquisitions and investments.
- ------------
* American Depositary Receipts ("ADRs")
Defining Your Risks
The following are important facts to keep in mind when
considering this investment for your portfolio. Please read them carefully.
Your financial professional will be happy to answer any questions you may have.
o There can be no assurance that the Portfolio will meet its
objective.
o The Portfolio is designed for investors who can assume the
risks associated with equity investments. It consists
solely of telecommunications stocks and is also concentrated
in stocks of equipment manufacturers. The Portfolio is not
appropriate for investors seeking capital preservation or
high current income.
o Federal legislation is changing pricing structures and
increasing competition.
o The value of your investment will fluctuate with the prices
of the underlying stocks. U.S. equity markets have been at
historically high levels, and no assurance can be given that
these levels will continue. In addition, 37% of the
Portfolio consists of international stocks, which may be
subject to special risks including higher volatility,
fluctuating currency exchange rates and political
developments. There can be no assurance that stock prices
will not decrease.
Tax Reporting
The proceeds received when you sell this investment will
reflect the deduction of the deferred sales charge and, after the initial
offering period, the charge for organization costs. In addition, the annual
statement and the relevant tax reporting forms you receive at year end will be
based on the amount paid to you, net of the deferred sales charge and, after
the initial offering period, the charge for organization costs. Accordingly,
you should not increase the tax basis in your units by these charges.
Generally, dividends and any gains will be subject to tax each
year. Capital gains, if any, on assets held over a year will be taxed up to
the maximum federal tax rate of 20% for non-corporate taxpayers. However, on
rollovers of future Portfolios, if available, investors will defer recognition
of gains and losses on stocks that are transferred to the new Portfolio.
Defining Your Costs
First-time investors pay an initial sales charge of about 1%
when they buy. In addition, all investors pay a deferred sales charge in
seven monthly installments of $2.50 per 1,000 units, deducted from the
Portfolio's net asset value in each year of the Portfolio's two-year life.
Amount per
1,000 units
- --------------------------------------------------------------------
[S] [C]
Initial Sales Charge $10.00
(1% of $1,000 initial offering price)
Deferred Sales Charge $35.00
($17.50 per year x 2 years)
Maximum Sales Charge $45.00
Estimated Annual Operating Expenses $ 1.68
Estimated Organization Costs $ 1.97
- --------------------------------------------------------------------
If you sell your units before the final deferred sales charge
installment in either year, the remaining deferred sales charge for that year
will be deducted, along with the estimated costs of selling Portfolio
securities. If you roll over to a successor Portfolio, if available, the 1%
initial charge will be waived.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to
put more of your investment dollars to work for you.
Amount Total Sales Charge as a % of
Purchased Public Offering Price
- --------------------------------------------------------------------
Less than $50,000 4.50%
$50,000 to $99,999 4.25%
$100,000 to $249,999 3.75%
$250,000 to $999,999 3.50%
$1,000,000 or more 2.75%
- --------------------------------------------------------------------
Select Now!
You can get started with the Tele o Global Trust 4 with as
little as $250. Call your financial professional for a free prospectus
containing more complete information, including all charges and expenses.
Please read the prospectus carefully before you invest.
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Select Now!
You can get started with the Tele o Global Trust 4 with as little as $250.
Call your financial professional for a free prospectus containing more
complete information, including all charges and expenses. Plesae read the
prospectus carefully before you invest.
[Recycling logo] Printed on Recycled Paper
113878R-8/98
[Copyright logo] 1998 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC
