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To: Hawkmoon who wrote (1559)11/4/2002 4:46:18 AM
From: zonder  Read Replies (2) of 6901
 
Re: Got a "tip" from a marketing guy who works in Telecom. (...) refusing to spend money on capital expenditures until they see deregulation passed.

Hawkmoon, your friend must be one of the few people in the industry who has missed out on the overcapacity problems of the telecom companies. Remember back when people thought internet traffic would double every few months and companies invested like there was no tomorrow to have the capacity to "benefit" from this growh? Well, internet growth turned out to be far slower than that, and a lot of that capacity is lying idle right now. This is the reason why there were no telecom investments in the past two years and there will be none for a year or two to come.

It does not help either that there is now a new technology called DWDM that has rendered obsolete most of these investments that were done with SONET technology. Basically, all these fibers were installed in expectation of high communication/internet traffic, but then came a technology that allowed many layers of information flow on the same optic fibre, in different frequencies of light. So now there is a graveyard of "unlit" optic fibres in these networks. That is the reason why telecom equipment companies are twitching and dying right and left, not because of telecom companies are ganging up against the government to pressurize them into deregulation.
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