Telecomguy:
Good questions.
"Doesn't WCOM have to pay the ILEC's (RBOC is an old term, heh) for the last mile connectivity?" Yup, but at FCC mandated rates which amount to wholesale or less. Bottom line is this charge is less than what the ILEC would charge you or me for the copper. Therefore the rest of your argument about heavy/light users is mote as long as WCOM charges some goodly percentage above their ILEC rate. It could generate some nice cash flow if they're able to lock their customers into extended contracts.
As for how they could lose money in the wireless resale arena....yah...I was puzzled about that, too. But consider....WCOM might have contracted for 'X' number of wireless connections/ports, without regard for the actual sales numbers they could attain. If they failed to attain the contracted numbers....well....in a simplistic fashion there's your loss. It could be that simple.
Now let's see how tomorrow goes in the market, what with INTC's little bomb-shell which you KNOW is gonna roil everything.
Oh...and by the by...if you're really resaling in Europe (no offense intended) then I applaud your timing. What with that continent finally coming together, and all the cities newly (pretty much in the past 10 years) fiber, or cellular, wired together - well - at least in western Europe (heh), you picked an excellent time to resale over there. Given similar opportunities that occurred here in the U.S. starting in the late '80's I'd say you've got 10 years of open field running before the competition catches yah as long as you're aggressive. Good luck!
John~ |
