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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.40

-0.5%

Dec 30 3:59 PM EST

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To: The Phoenix who wrote (37136)	6/5/2000 11:55:00 AM
From: Zoltan!	Read Replies (2) of 77400

Where's telecomic? Seems the collapse of his business -Europe can't be that far behind - is coming sooner rather than later. from today's WSJ: ...There's a great deal more regulatory mischief yet to be undone. From Hollywood on down, the high-speed Internet is dismantling the old economic infrastructure of the communications industry. But the current regulatory environment won't allow the market to build up a new one in its place. As a result, the technological triumph of the Internet is rapidly turning into an economic disaster for industries in the communications business itself. Long-distance carriers face the complete collapse of 10-cent-a-minute (domestic) and 50-cent-a-minute (international) calls; they're headed for no-cents-a-minute. Local phone companies face the equally rapid erosion of the remaining "access charges" they are required to collect from long-distance carriers rather than from end users. Napster and Gnutella, meanwhile, let millions of small-time pirates coordinate their copyright crimes. We each transfer a file or two -- a song or a movie -- to our computers; Gnutella then pools our efforts by way of our high-speed connections to the Web. Cable operators will soon be competing against a torrent of such "streaming video" content. So much for premium or pay-per-view channels. Competition being what it is, the industry supplies the rope to hang itself. Gnutella was originally released through America Online's massive servers; the program's biggest victim will be AOL's own betrothed, Time Warner, the biggest owner of electronic copyrights. Cable operators are terrified of streaming video, yet much of it will be delivered over cable's own high-speed Internet access services. Long-distance carriers like AT&T are rushing into "Internet telephony" because it will let them bypass the access charges they pay local carriers; but Internet telephony will eventually wipe out the long-distance carriers' own toll revenues... interactive.wsj.com btw, I have been using the internet to watch full screen - full length movies over DSL. Domestic long distance is now "free" so long as I stay next to the computer. The quality is close but not perfect but I'm sure better software is out there.

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