Hi John, RE: "Intel Chair Wants Relaxed Broadband Rules...saying wider deployment was necessary even if it would cause more independent carriers to go out of business."
This would impact Cisco, short-term. About 25% of Cisco's decline was due to a drop in the BLEC market. Relaxation of the 1996 rules would translate into more bankruptcies of more BLECs or those ISPs with agreements with BLECs. There's around 100 BLECs, but the VCs have decided to let this market blow up. More than 10% of them have gone bankrupt in the past few weeks, which isn't significant, but the fact the bigger ones have is. So, Grove appears to be correct in assuming that the VC community is not going to support (prop) this market, so the only one left to do the job is an incumbent with the funds to do so. However, current legislation lags the reality of this situation.
But one really big problem I see, that needs to be addressed for innovation to really move forward, is getting the incumbents to move faster. How on earth is the industry going to get the incumbents to move faster, without competition to force them to do so?
Frightening for me to think that my INTC stock will be dependent upon how fast an incumbent moves. Intel's got to do something about this situation to speed the incumbents up. I sure hope Grove (et al) are correct in thinking the incumbents are the answer. An incumbent's pace can be frightening slow, which isn't good for INTC.
Regards,
Amy J |
