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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: slacker711 who wrote (12119)2/10/2002 3:22:19 PM
From: Dexter Lives On  Read Replies (2) of 12823
 
SKT may run into technical problems that will slow their build-out (always a risk)...but I fail to see any issues with financing their network.

I've said this before on G&K and I'll repeat it here; capital scarcity is not visible until it's too late to do anything about it. Activity like we've seen in the last 2 weeks on the stocks of (for example) Worldcom, Qualcomm and Sprint are a shot across the bow; equity and debt markets will close to them unless they make a good business case for new investments. So far, they appear to be product and engineering driven efforts, not market-focused - that's a very bad sign.

If it's true for Sprint (capital scarcity developing), it will be true for Korean operators. Like it or not, capital flows out of certain sectors and into others, all at once. Telecom is in outflow mode and has been for the last couple of years. It won't end soon, as there has been little consolidation in either the operator or gear supplier markets, and no brilliant models have emerged to validate new money flow. As evidenced by the recent Taiwan license auction, these companies continue to spend wildly on spectrum; the future winners will be the ones that step back and let the others kill themselves with debt. The only winners today are governments collecting juicy spectrum fees.

Just my honest and humble opinion. Rob
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