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Technology Stocks : Covad Communications - COVD
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To: neverenough who wrote (528)12/31/1999 9:09:00 PM
From: Jack Hartmann  Read Replies (1) of 10485
 
COVD 12/30 notes of interview with Tim Laehy, CFO of COVD
- cable not focusing on business user like DSL
- cable is a share bandwidth and share infrastructure. DSL is private line. Cable speeds less than DSL when cable is congested.
- Always on like cable
- 1.5MB/s fastest and 140KB/s on slow end
- linesharing was a big victory of DSL provider. Not charged a service fee from local exchange carriers.
- not see benefit of line sharing until 2000. Will see $40 charge drop to maybe $5/mo.
- looking at opportunities in Canada and Europe
- "we are looking at 4% market penetration"
- Built the largest DSL network in the world
- Will start seeing COVD commercials and co-branding with our partners
- Have to spend money to build the network (talking about losses)
- $5 spent to pass one home, $500 for cable to pass one home. Cable is mostly one way cable not. They must spend money to go to two way cable.
- COVD is doubling subscribers every 90 days.
- 360% return on COVD stock pricethis year, "I think it is light"
- Earnings call at end of January, Analysts expect$55-65M in rev this year and $200M next year
- biggest competitor to COVD is regional bell carriers (RBCs). COVD is a nationwide carrier.
- Pacbell lost 50% market share to DSL competitor due to many disatisfied with Pacbell performance.
- we have first mover advantage, great management team
- It will be great to see fiber in the home. The electronics to support fiber is extremely expensive. Won't see it for years.

Tim was very smooth and knowledgeable. Was a great interview.
Jack
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