Bosco & Crossy's stock picks,talk area Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Condor who wrote (34887)	11/13/2009 4:41:38 PM
From: Crossy	Read Replies (1) of 37387

Condor, to me CTEL's strategy is clear. They are the lowest cost player with the highest speed offering. So they are translating that into a value proposition and market their connectivity options cheap. When others sputter, CTEL's top and bottom line will nicely grow. They might even force the incumbents (cable, phone incbuments) to show their hands, maybe buy them out. If I were thecableco in HK (called i-cable) I woudl immediately try to acquire CTEL... The "extra value" for CTEL will accrue when their status in HK will reach ubiquity. Then CTEL will be able to sell HDTV channels over their IP network and charge accordingly. this is a tale of "many markets" where you need to play in the beachhead market for connectivity to get into everyone's home, then you can compete in all derivative markets also.. it'S not that simple but this appears to be the basic strategy at work. If CTEL's plan works the way contemplated, the hypertrophic incumbent PCCW can say goodbye to the value of its fixed-line network. Even ADSL2+ Annex M (at 32M/3M) is technically inept when compared with symmmetric 100Mbit conections. While PCCW can invest on its own, it will become difficult. To reap the opex savings from FTTH, the "easy" phone company upgrade to VDSL2 won't do it as this would keep most of the lines copper final hundred meters in place. And move to a PON architecture directly (like VZ did) will take time. not to forget, while PCCW is burdened with a debt load in the billions, CTEL is net cash positive and net debt free, while passing 1.62m homes and already connected to 1200 corporate buildings (up 500 from last year). we could actually witness the first fight between an ILEC owned legacy network and a competitively owned optical NG-network where the odds are skewed towards the competitor. Quite unusual indeed... CROSSY

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next