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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: Frank A. Coluccio who wrote (10844)4/3/2001 8:40:09 AM
From: MikeM54321  Read Replies (1) of 12823
 
"I don't see the same level of incentive on the parts of the MSOs to bite the bullet and spend what is needed....Nor do I see the ILECs motivated to the same extent that they were only a year ago to compete with all of the above."

Frank- It's nice to know that although we see the issue of the government involvement in attempting to foster competition in quite contradictory terms, we always remain very civil. I see the problems of both the ILECs and MSOs rolling out advanced services as being caused by the FCC being much too involved.

Say you are an ILEC and you want to spend billions laying fiber to remote cabinets. Then along comes a government created competitor that risks nothing and can swipe half your revenues away from you with the power of the government behind them. That is a major disincentive for the ILEC to make an investment in upgrading their network.

Or say you are a MSO. You plan to spend billions upgrading your plant. Then along comes an ISP and boom! Instantly they can swipe 50% of your revenues by demanding, "open access" to your data network. That's a major disincentive for the MSO to make an investment in upgrading their network.

IMO, the government should do everything to assure the ILEC and MSO that, "If you build it, it's yours." Instead they do the opposite and threaten to allow competitors to take 50% of the revenues away from the ILEC or MSO.

All of course, IMHO. -MikeM(From Florida)
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