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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here

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To: MikeM54321 who wrote (4751)	7/19/1999 9:23:00 PM
From: Frank A. Coluccio	of 12823

Is this possible or did I hear something wrong? Mike, I can't vouch for the actual numbers which you cited, but what you're dealing with here is nothing short of a razor and blade model. Only, with Central Office mainframes like this you can add annual maintenance charges, too, which probably fall under the same revenue line. Logic, controller- and high- capacity OC-x ports run into very big bucks per. Carriers will usually purchase a system shell, with the bare minimum number of cards to get them off the ground and meet initial cutover and foreseeable growth, plus a % for maintenance spares [although, you couldn't prove that by me, lately, with all of the missed appointments and scheduling delays I've witnessed in the recent past due to DCS and ADM port shortages] and then they proceed to do just-in-time provisioning, more or less, from that point out. This is a part of what accounts for the egregious 90 and 120 day "normal" implementation cycles (which sometimes extend up to six or more months in certain areas) for T3s and above. The numbers don't surprise me that much. Regards, Frank Coluccio

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