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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.04-0.3%Nov 26 3:59 PM EST
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To: The Phoenix who wrote (30249)12/14/1999 11:50:00 AM
From: telecomguy  Read Replies (1) of 77400
 
I did answer your question Gary. The main reason why the dominant Carriers (and these are not all PTT's! e.g. MCI/WorldCom) will buy the start-ups is for the customer base.

Let's remember that PTT's and Carriers are NOT that interested in the new-fangled network based application market -- because the bread & butter revenue source is still your basic dialtone and communication (email).

At the end of the day, most of us pay our Carriers money because they own the pipe and we need to make phone calls and send emails...........yes there are all kinds of new business opportunities in terms of ASP, Web Hosting, E-Commerce, etc.etc. but most carrers are not going to dominate that sort of application driven market. That is simply not what the backbone Carriers/PTT's are good at. They are going to likely concentrate on pushing bits around and providing stable, redundant, far-reaching network infrastructure and then let the Content and Application companies buy network access time. Of course some PTT's are going to do both but in the long-term, I see PTT's and Carriers building and maintaining the superhighway with the smaller niche content/application service providers co-existing with the Carriers.

So in that sense I agree with you but the main action now is in the bread & butter basic telephony and Internet Access for dialtone and email.

And regards to the point that if PTT's buy the start-ups, of course they won't kill the acquisition's revenue stream from the new-fangled service/application channel but the point was that at some point, the PTT will INTEGRATE these new start-ups switches and routers to their main vendor's product line for lots of good engineering/maintenance/functionality reasons.

My point is that the PTT's and Telcos WILL upgrade and deploy Next-Gen networks. They are not going to sit and watch the new startups steal their market share without a fight.
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