Comments relating to bandwidth trading or on the company as a whole? Regarding bandwidth trading, they had a good idea, but just like any other start up (yes, that division had to be started from scratch so I considered it a start up) it's difficult to ramp up revenues.
There isn't a ton of accounts in the telecom world to hunt down for the large or special application deals. Enron had to go up against Worldcom, ATT, the RBOCs, Level 3, ect to fight for each deal that was on the market. Personally, I think that is an intimidating task. Also, in order to make their business model work, they needed to be selling into those companies also, and the process to enable that (interconnection agreements, standard telecom msas, collocation, correct decision making contacts, a product or service they actually need)usually takes more than a year to accomplish. So, time and the market were against them.
Not only was the market against them, most of the market fell apart at the same time they were pushing their new idea. |
