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Non-Tech : Amati investors
AMTX 1.6500.0%3:59 PM EST
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To: pat mudge who wrote (28360)11/5/1997 4:08:00 PM
From: riposte  Read Replies (1) of 31386
 
[Re: RBOCs and upgrades]

Pat -

The way it was explained to me by some old-time BellHeads, back in the "olde days", AT&T was allowed a rate of return based on their network expenses - basically, anything which directly effected the ability to provide service. As a result, they were encouraged to overbuild infrastructure, and have 10 years of spare parts for switches and such, because the more $$$ tied up there, the more they would be allowed to earn.

Steve

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