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Technology Stocks : RCN Corp. (RCNC) - Voice-Video-Internet
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To: Alan Gallaspy who wrote (687)1/10/2001 6:48:38 AM
From: lml  Read Replies (1) of 720
 
Excellent article, Alan. I live in LA and have followed this story for OVER a year. The hold up of RCN by the City of LA has been going on for more than six months, and it has always been my conclusion that the incumbent MSOs were behind the delay.

It is unfortunate that RCN is also having issues to deal with outside the City of LA where it has relied upon SCE utility easements to install their cable plant.

Cable service in the City of LA is among the worst with sole exception of TimeWarner who holds a single franchise in the NW San Fernando Valley. Adelphia and AT&T control essentially the rest of the City, with BuenaVista holding a single franchise. Adelphia has JUST STARTED to install fiber to deliver digital TV broadcasting in some areas of the City. Upstream plant is non-existent, and IMHO won't be for more than a year. A disgrace given the demographics of many of Adelphia's service areas and the Mayor's claim as LA being the "Digital Coast." In reality, when it comes to the residential community its a digital wasteland.

T is not that much better. Though it delivers digital cable and cable modem access, it is not fiber & uses 4:1 old tech digital compression. T's plant in LA is essentially the plant it acquired from MediaOne last year.

I point the foregoing out to demonstrate how poor the cable plant is in LA and how well-designed RCN's strategy is in this area of So. California. Unfortunately, City politics are overly bureaucratic, inequitable, and tremendously burdensome to free market capitalists.
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