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Technology Stocks : Ciena (CIEN)
CIEN 232.23+1.3%Jan 26 4:00 PM EST
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To: Ibexx who wrote (11939)3/25/2002 7:21:16 PM
From: FR1  Read Replies (1) of 12623
 
Thanks AG for going tight money crazy right when everybody was trying to build out. It killed all the projects in mid-flight and left telcom businesses with enormous debt.

Other factors not covered by the article:

1) If businesses are consolidated down to a few giants, what is to prevent them from price fixing and simply allowing bandwidth to constrict rather than build out? It's no surprise to me that my local DSL and cable are offered at the same price.

2) Banks don't want to lend to somebody with that much debt.

3) So maybe things will just run slower for the same price.

There might be some truth to the argument that this has got to be a government project. Korea, Japan, Germany, France, etc... all have a national plans to bring broadband to the citizens.

The argument is that you can not ask Wal-Mart to fund building the highways between towns. It might bring more business to them but not near enough to pay for the building of the roads. The same may be true with the telcom industry to some degree.

I think this would make a great political football for this year's election and I'm surprised the democrats have not jumped on it. All they have to do is present a national plan for getting broadband internet to our citizens by date X and then point out that the Republicans have no leadership or plan at all.
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