Max: This SBC announcement makes it clear they're stomping the pedal to the metal with their DSL plans. Clearly they want their market covered, and covered in as fast a fashion as possible. A parenthetical aside here....I wouldn't be at all surprise should SBC buy COVC somewhere down lifes way. Given the LEC's like to dominate their monopol.....uhh....business coverage areas (heh), I don't see them having a "partner" for long in this sector. COVD now becomes an interesting play from that perspective.
Anyway.....we all know WSTL is going all out for SBC, so as such I don't see this news as impacting WSTL negatively. WSTL's still going gang busters, and there's nothing to indicate this is about to change, therefore over the interim period WSTL should (after this death by a thousand cuts period expires) do very well. Be that as it may, there is one thing WSTL needs to guard against, and that is market perception that COVD will now begin to eat into future earnings by taking lines originally projected by the market to be covered by WSTL, and now being covered by COVD (who I believe uses Alcatel.....but I'm going to have to snuffle around and see if this is truly the case). The market might get "anxious" over this perception.
Bottom line? I happen to think there's enough business for everyone over the next couple of years. Besides, who's to say SBC hasn't made some "recommendations" in this very area when they were discussing these plans with COVD. Recommendations which could be favorable to WSTL. IMHO, and mere speculation, of course. |
