RE: VZ suppliers. Yes, up until now WSTL was primary ADSL supplier to VZ, but EFNT CEO stated they had product being tested by the other ILECs, presume he meant VZ and others.
Another topic re: margins on CPE. MZ told me that the ADSL CPE that EFNT sold was 30% routers... basically an ethernet bridge with some software, that raises the price from $150 to $250-300, with profit margins well north of 50%. I bet if you compared margins on an apples to apples basis, both WSTL and EFNT do the same. Problem is, WSTL needs some of that high-margin biz too.
What I want to hear is that SBC is using Covad, and VZ is using Northpoint, to penetrate the other ILEC's territories, and putting the feet of BellSouth to the fire.
WSTL needs all the ILECs as customers, and WSTL needs to sell their newer USB (described by Capt_Smartjack as the one that has internal SAR function capability, and superior to 'other' USB product on the marketplace) to all these. MZ also told me explicitly that their USB was being evaluated by the ILECs. My guess, and this is all it is, is that it is this latter one, and if sales of that pick up, then WSTL can go green.
Wish I knew just what was in inventory. MZ told me that it was 1/2 finished CPE product, but no differentiation was made. He also said that up until this time, WSTL had not sold USB domestically. Maybe he was hoping for an order of some of that, and built inventory in anticipation. Speculation doesn't serve on this, however. Just idle.
Regards, Rich |
