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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: gdichaz who wrote (50465)2/23/2002 12:43:33 PM
From: arun gera  Read Replies (1) of 54805
 
>one of the major reasons wireline is in such difficulty is that wireless is eating its lunch on voice and is killing its long distance business which was a major source of earnings.>

Are you sure? Most business is done with wireline phones. And business accounts for the large portion of the total local and long-distance market. It is overcapacity and competition that is eating the long-distance market. Wireless, in fact, allows you to mark up the long-distance rates in comparison to wireline rates.

The Baby Bells monopoly on the copper wire infrastructure is what is protecting them, not their brilliant management or technological innovation. Therefore, in-state per minute rates are twice that of state-to-state long-distance.
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