I'm referring to SBC's DSL rate hike, from $39.95 to 49.95. I've read in several places over the past couple of years that selling DSL for $40/month is not profitable. If SBC, et al, are able to increase the monthly fee, and make it stick without losing customers, this will bode well for the telecom sector, since it'll be profitable for them to invest (truely "invest" rather than "speculate") in more gear.
I can't imagine anyone willingly giving up DSL for their old 56Ks. I've been told DSL is ramping well in certain sectors of the US. (I didn't ask which.) I know it's ramping at amazing multiples in Europe. If the price hike sticks, it'll be great for the entire industry.
OT, I'm weathering the storm by repainting some of the rooms in my house. I started in the family room and am working my way down the hallway now. First caulking everything that needs it, then sanding, then priming, and finally top coat. I'll be crippled when I'm done, but think of all the costly psychiatrist bills I'll save. :))
BTW, I'm sure no one's bothered to discuss SBC's rate hike b/c it's whistling in the wind to discuss anything related to fundamentals. They won't matter until the overall sentiment changes.
Pat |
