re: an Italian power company, cellular joint ventures, wandering cross hairs
Francesco Tato, CEO of ENEL, the Italian power utility which is going public and joining the NYSE today, was just interviewed on CNBC by Mark Haines.
He discussed his concept of a multi-functional utility, or what I am here and now coining the MFU concept, in a rapidly deregulating environment. Such a spin is not uncommon and shouldn't surprise anyone at this moment in time in his company's history. What other aspect of the business is he going to discuss? Phase angle regulators, load shedding, and brownouts?
A moment earlier, Haines noted that Enel might be investing monies in the US, into who knows what, I mused. I though to myself and ineterpreted that Enel, and other utilities similarly situated overseas with deep pockets, might be aspiring [conspiring?] to enter our shores in the telecom sector. Nah, not now. We have a growing supply, some would argue a glut, of bandwidth being put in place now, anyway.
So, I initially dismissed the MFU statement as one of obligatory rhetoric. That is, until Tata went on to enumerate on the results of Enel's joint venture in the wireless cellular markets with France Telecom and DTK which now boasts over a million customers and is seen as breaking even in 2002. This was a very fast ramp up and an exemplary record, in not so many words, according to the CEO, who was obviously proud to be making such a satement.
I found the interview inspiring because it reinforces the theory that power companies and other utilities are optimally positioned to commence wide scale deployments of local and regional telecommunications, entertainment, and Internet services.
Note that I still distinguish between these service sectors, since in fact they are still distinct. And they will continue to be for quite some time, without a fresh approach to delivery, which I think that MFUs and pure play equals (from a ground up startup perspective) can offer. The other guys? They simply have too much embedded baggage from an earlier set of models to do it right, without writing themselves off, into oblivion.
Jay, how do you find this fitting into your metamorphosis theory? Dave, take note that this is one of the salvos in my upcoming thesis which I will incorporate in my reply to you, when my new time management and load balancing tools permit. Others? What do you think? I'd like to hear some opinions from others on this matter, as well.
Regards, Frank Coluccio |
