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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: Phil(bullrider) who wrote (6059)11/23/1999 8:59:00 AM
From: elmatador  Read Replies (1) of 12823
 
Access Pricing and Tariff rebalancing: In most countries access tariffs -particularly residential customers- is heavily subsidized by profitable long distance. Deregulation opening up competition in profitable segments, the loss making access needs to be profitable on its own right. That means price increases in access (as much as 200 to 400%) while cutting prices on the long haul tariff. The speed at which regulators allow rebalancing will strongly influence whether the operators invest or not in fixed wireline infrastructure. To the extent that tariffs are not rebalanced, access will favor wireless which is not subject to the same level of tariff regulation. Thus cannibalization will occur and weaken the case of access platforms.

We need a redefinition of what is "Talk is Cheap".
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