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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: geoffrey Wren who wrote (10751)3/21/2001 8:32:06 AM
From: MikeM54321  Read Replies (2) of 12823
 
"Where will the money come from?"

geoffrey- I didn't quite see where the last mile issue was discussed in the article you linked to. One can infer that if the backbone is overbuilt, the only way to put it to use is to solve the LM problem. Note: I only skimmed the article so may have missed details.

Anyway, in answer to the real $64K question above, "Where will the money come from (to solve the LM problem)?" It lies in the revenue streams of the world's telecom service providers. But that is also the problem. Consider that if the US generates 1/3rd of the worlds SP revenues (I use the term SP very loosely to include everyone) at about $333 billion, then the world's total is in the ball park of a $1,000,000,000 annual revenues per year! A trillion dollars per year. A substantial figure.

BUT that is only forecast to grow slowly, yet demand for bandwidth is forecast to growth substantially. So what do you have? A quandary and a telecom debacle.

I see that no matter how you cut it, we will grow out of this debacle because it's clear the demand is there and the revenues are there too. It's just a matter of time to see how this is all going to merge into viable business plans.

Of course unblocking the last mile bottleneck will do wonders for putting all the core capacity to use, but it's too bad end users(business and individuals) aren't willing to pay for it. If we were, then I doubt we would have had this huge market cap debacle. It appears the LM problem is most likely going to be solved incrementally, hence slowing the explosive growth most telecom equipment suppliers have seen in the past. Or maybe some killer apps will come along that will induce end users to be willing to pay more for broadband sooner rather than later. Either way, time is on the side of the telecom equipment investor.

All just off the top of my head thinking and nothing more. -MikeM(From Florida)
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