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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 233.23

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To: Victor Lazlo who wrote (109906)	10/8/2000 11:17:24 PM
From: Glenn D. Rudolph	Read Replies (2) of 164684

Victor, This is my take based on conversations and reading so it comes with a grain or a pound of salt. Bandwidth is becomming a commodity. Demand for bandwith continues to increase as broadband rolls out and there are new people accessing the net. I suspect the new entrants are not as siginificant as broadband. The backbone carriers have a problem. They need to supply more and more bandwidth to bring in revenue as the cost for bandwidth drops. They have to increase their infrastructure to do that. That means they have to spend heavily on fiber and fiber components not to mention routers, etc. The component providers can still command decent margins because their products are not a commodity yet. This is killing the profits for firms like T, WCOM, etc. They would be in worse shape if they stagnate. In brief, they need to sell more quanity of bandwidth at very small profits to turn a profit at all and the providers of their needed equipment make out on this. I would be happy to entertain another thought here. Glenn

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