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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: MikeM54321 who wrote (6031)11/20/1999 9:55:00 AM
From: E. Davies  Read Replies (2) of 12823
 
Look we are going to risk $2 billion/year on upgrading our plant, bring fiber closer to the home, and install 20,000 very expensive NGDLCs.
Sounds exactly like what the cable MSO's are saying.

The mentality of the FCC is clearly the premise that the copper wires have long since been paid for and therefore no capital is at risk. In some cases this is not true.

A public monopoly wants to use private money to upgrade and ride new private features on the public granted monopoly. Somehow the goal should be to allow them right to the return on the risk, but in some finite way.

For both cable and telephone a "fair" solution might be somewhere in the domain of allowing the owner of the wire exclusive access to whatever has required significant risk capital to upgrade for digital service for some reasonable period of time. After that the lines should be opened to the public domain.

In the case of the telco's that means there would be some lines that would be "open" and others not. Still a regulatory tangle, but then the telcos are used to that.

It the case of cable it simply means leaving them alone for now, since basically everything has been subjected to major risk capital improvement.

What do you think of the underlying principle I'm trying to convey?

Eric
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