Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: energyplay who wrote (41353)	11/13/2003 2:21:18 AM
From: elmatador	Read Replies (1) of 74559

Hi EP, The $500billion was spent on adjunct infrastructure: mobile infrastructure, Internet, data networks, and capacity to carry added traffic. But what was there already, was not fork-lifted. Is still there. You'd be amazed when you enter an equipment room and see ancient stuff there working side-by-side with modern gear. New clever algorhythm, 'squeeze" traffic -using compression-on costly infrastructure. We used to carry voice at 64Kbit/s today at 8Kbit/s. We take documents that used to be faxed and occupied a phone line and squeeze over data transmission. Yes, I'm being over simplist here, point I am tryin to make is that a ton of USD have gone in make a better use of the legacy. This legacy is still there. Let me make an analogy: Those $500billion is a termite eating into a log that was part of a tree that grew long time ago. Unless there's new trees growing, once the termite finishes this one, there won't be more logs for the termite to live off.

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