BANDWITH GLUT?
>>>Williams Communications CEO Refutes Bandwidth Glut and Offers Vision of Future Telecom Landscape
NEW YORK, June 19 -- Howard Janzen, Chairman and CEO of Williams Communications (NYSE: WCG - news), today refuted a number of telecom industry myths, including recent bandwidth glut reports that failed to recognize differences between lit and dark fiber, during a keynote speech at The Goldman Sachs Emerging Telco and Internet Infrastructure Conference. Janzen also offered his perspective on telecom's direction, noting the emergence of a few survivors and increased opportunities for companies with focused, consistent strategies.
``It's simply not accurate to add up dark fiber in the ground and then say there is too much capacity,'' noted Janzen. ``Dark fiber in the ground does not equal usable broadband capacity. When we built our 33,000 mile next- generation network we strategically added more fiber than we needed immediately to prepare for the inevitable future growth in demand.'' Janzen added, ``It takes a great deal of time and capital to 'light' dark fiber. With a fully lit and operational network, Williams Communications provides end-to- end network services today, and is well positioned to turn up additional capacity as more applications drive traffic onto the network.''
According to industry analysts who cover the sector, broadband applications such as wireless web, video-on-demand and eCinema will spur demand in the near future, while demand for traditional telecom services continues to grow.
``You won't find many industries that can match the growth we're seeing as new broadband applications drive demand,'' noted Janzen. ``I believe we'll find marketplace fears about bandwidth glut are unfounded. There is strong and continued growth in the Internet and data traffic market and recent studies by industry analysts cite Internet growth rates approaching 100 percent per year.''
During his keynote, Janzen also discussed the changing telecom landscape and acknowledged that the market shakeout will continue. According to Janzen, the market will see continued vaporization of weaker players. However, as demand continues to accelerate and local access bottlenecks continue to be eliminated, companies such as Williams Communications, with compelling value propositions that address the changing marketplace, will thrive.
Janzen noted that Williams Communications, with a stable customer base which includes high quality bandwidth-centric companies and a next-generation network completed last December has a significant advantage in surviving the telecom shake-out.
``It is ironic that the market meltdown has actually created a bigger opportunity for us,'' Janzen said. ``Even the largest players in telecom don't want to spend capital in this environment, and yet they need network capacity to meet the surging growth in voice, data, and Internet traffic. We are perfectly positioned to meet that need by providing a network outsourcing solution today, and with funding that carries us into 2003 when we expect to be free cash flow positive.''>>>
Namaste!
Jim |
