"The companies have valuable assets, but without a local network component--or new services and technology that can
distinguish their long-haul networks from those of the growing number of competitors--they will be hard-pressed make new strides forward, analysts said.
Ken and Thread,
At first I thought your article was going to be bringing up the tired old, "Too much capacity...yada, yada.." I'm surprised the financial media had given up on that one. Humorously I have enjoyed reading this spin for the last three or four years (remember I'm terrible with time frames) every time the valuations of the backbones carriers seemed to get pretty lofty.
Stocks would reach new highs before correcting. That story would be forgotten, and then stories would come out saying the Nacchio and gang are geniuses and the backbone guys are worth their weight in gold because of the, "Explosion in data...yada, yada.." And the cycle would continue.
But now there may start to be a new spin. Suddenly GLBX messed up the old story by pursuing FRO, hence QWST going after USW in a tangled mess... So the news media jumped on another one.
Now the spin goes, "The backbones aren't worth anything unless they have local access...yada..yada." Boy that's a good one. I wonder how long this one will be re-run depressing the stock price of the backbone players?
Sometimes I think it will run as long as it takes for the big money managers on Wall Street to establish positions.<g>
IMHO I have no idea how any reporter can say the assets of GLBX, USW, QWST, FRO... are not just as valuable the day their stock prices hit all time high. Who are these,"new competitors," that the story brings up?
I had always figured there were TREMENDOUS barriers to entry for running 17,000 mile complex, leading edge, fiber optic networks across the land mass of the United States and 3,000 to 6,000 mile cables across the oceans of the world.
MikeM(From Florida) |
