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Technology Stocks : Nortel Networks (NT)
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To: The Phoenix who wrote (6685)9/5/2000 2:20:16 PM
From: telecomguy  Read Replies (1) of 14638
 
OK,OK Gary, I will try not to be so abrasive!

Right now, the sales of "other services" (which I presume you mean data & applications) will NEVER come close to replacing the telephony revenue. THAT is REALITY. Case closed.

In fact, it seems the data market is moving towards DIFFRENTIATION of service levels and guarantees as a MEANS of CHARGING higher prices for performance sensitive customers. Metered fee is something that many ISP's are moving towards as they finally figure out that their "all you can eat" access pricing model is a loser approach as it treats all customers same and prevents the ISP from milking the high-end customers who in fact want guaranteed performance/service levels.

Bandwidth is not free. What was happening was that the ISP/Internet market was very immature and as result many players thought they could make money with crude fixed fee approach (or in many cases FREE access/service business model where the only source of income was from advertising ....we all know what kind of carnage that sort of business model has created!).

All businesses are the same. They HAVE to generate revenue and it has to be somehow related to cost. Bandwidth is not free and will never be free. It may go down in price but as the internet market matures, you will see more performance/metered basis of fee structure -- i.e. moving towards cost/bits and performance levels.

AT&T is not going to offer free long-distance in any real way. They can't. If they did, their stock price would go down by 2/3 more than it already has.

Gary, what service fees do you think AT&T can charge to replace the long-distance revenue in the short-to-medium term?
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