So, now, investors in telecom, used to government subsidies, and comfortable monopolies, are now in the same boat (cold water) as us "silicon sailors" have been in for decades--how to make money off a market where price/performance declines year after year. And these telecom "investors" are throwing a tantrum. Used to offering the customer the same ole (reliable) service decade after decade, and getting to charge more for it, they are now in our hot seat. (Welcome, pilgrims.)
AND
So, as crazy as it sounds, maybe the place to put money in telecom is, after the ships with obvious holes go down, into the GX’s, WCOM’s, SBC’s, and LVLT’s.
I am not so sure I agree with this second statement. Why invest in a sector with reltatively little IP and barriers to entry which are not that large? If this were not bad enough, the first highlighted paragragh indicates that they will not be in the drivers seat in terms of pricing in the coming years, with consumers having ever widening choices. When investing, I prefer to stick with companies with large IP portfolios and enormous barriers to entry. WCOM and SBC do not come close to fitting this bill.
Excellent post BTW.
Regards,
Brian |
