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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: MikeM54321 who wrote (4199)6/16/1999 11:00:00 AM
From: lml  Read Replies (2) of 12823
 
Last time I checked, there is nothing to prevent GTE from spending $70 billion on purchasing cable plants or even building their own. They did it in my area, so they certainly know how to do it.

Hi Mike:

While the foregoing is certainly possible, it does not make good policy. Redundancy in the plant, particularly in residential areas, is not something I think the FCC necessarily wants to encourage, or is the appropriate business model for competing access providers to pursue.

Rather, present FCC policy as expressed by Kennard encourages each cable franchisee or its successor to upgrade its present plant to deliver Internet access into the home as a way to compete with the telecos, who now may be characterized as competitive due competition between the ILECs & CLECs.

I believe that once the nation's cable plant is substantially upgraded & the MSOs have established a proven cash flow from their investment, FCC policy will shift from one of exclusive access to one of more open access. The underpinnning of present policy is to encourage investment in upgrading plant & is an overriding benefit that outweighs anti-competitive environment now in place.

Taken to an extreme, open access does not necessarily mean "30,000 providers" sharing the same pipe. I can foresee a policy whereby the franchising authority may eventually open up access --let's say -- no more than 6 competing ISPs. I think the technical reasons prohibiting open access raised by @Home & AT&T have some merit & that the release by GTE/AOL is typically MSFT-like FUD. I do, however, believe that the technical rationale for maintaining exclusive access can be overcome, but with some investment & with access opened to a limited # of ISP competitors. Where this additional investment where come from is a good topic to explore.

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