All:
I am less interested in USRX or CSCO than INTC and MSFT. Keep in mind that both Microsoft and Intel have a great deal to gain from the successful deployment of ADSL and will weigh in at some point, probably in unison.
For Microsoft, high bandwidth means overcoming the competitive threat posed by Java and allowing it to continue to make and sell fat, as opposed to lean code, programs. High bandwidth will also enable Microsoft and other software cos to distribute their software via downloads over the internet rather than in boxes with manuals, etc. . . This will increase their margins and virtually eliminate the costs and risks of bugs in software. (Got a problem with our software? We've fixed the bug now. Yeah, go ahead and just down load it again if the fix it patch won't suffice)
For Intel, high bandwidth means a more robust, dynamic, satisfying Internet experience and high quality video conferencing which translates into more Pentium and Pentium Pro sales. Andy Grove desperately wants the Internet to become a vibrant experience that rivals television. If ADSL is seen as taking off toward this goal, Intel should jump and help the deployment process along. If the choice is between USRX's ISDN level speeds or AMTX's 8 megabit speed, Intel will support AMTX to hasten the day of fat pipes.
In case you wonder whether Intel or CSCO/COMS is the more potent ally, think about what Intel's incursion into the lower end networking equipment market did to CSCO and COMS stock price a few weeks ago. Once Intel and Microsoft take their positions, we will KNOW.
Andy |
