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Technology Stocks : PSIX up 26.5%, Takeover(?)
PSIX 71.77-5.2%Jan 30 3:59 PM EST
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To: bob zagorin who wrote (1527)11/15/1997 9:20:00 PM
From: blankmind  Read Replies (1) of 5650
 
here is an interesting article on the wcom merger with mci:


Other large ISPs agree that the deal is good for them. PSINet, for example, used to compete with MCI and UUNet for business Net access customers--now it has moved up the competition ladder.

"It is clearly a good thing for PSINet. Our core business is corporate Net access, the [WorldCom-MCI deal] makes us the second-largest player there," said Chuck Davin, PSINet's vice president.

But Davin admits that the buyout won't benefit everyone in the industry, such as small ISPs. WorldCom announced earlier this year that it would only let ISPs that were of comparable size in network capacity hook into its backbone--this left many mom-and-pop providers out of the loop. On the other hand, PSINet said it would peer with the little guys for free.

"More important is what the marketplace thinks of this in competitive terms," he said. "WorldCom charging for peering and its acquisitions are a zero-sum game."



for the whole article:

news.com
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