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Non-Tech : Amati investors
AMTX 1.595-0.3%Feb 6 9:30 AM EST
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To: JW@KSC who wrote (7619)12/30/1996 4:49:00 PM
From: Vladimir Zelener   of 31386
 
Hi Jim:

I agree with many of the arguments you brought up and I believe the ADSL industry will take off. The timing though is a question mark, at least for me.

The long distance cos are trying to enter the local telephone business to compensate for the loss of business which they will lose when RBOCs will be allowed to bypass them in the Long distance service. Robert Allen of ATT said in one of his speeches that within 5 years ATT's goal is to have 30% of the revenues coming from local telephone business. ATT, MCI and other Long distance cos are not planning to run its own local wires. They are trying to lease the copper from RBOCs. And from what I have heard there is significant resistance to leasing the lines to ATT and others as required by the new FCC rulings. For instance US West allowed Time Warner "so called" Long distance Co into its local market and immediatly demanded the pemission to run Long distance calls. GTE is claiming that the requiring to lease the 2-3 miles of copper for $16 is unfare, because it cost them (they claim)$70 a month. New England telephone Co., which charges the subscriber $15 a month, demanded from ATT $30 a month.

Based on all of those facts I felt that just for the sake of telephone communication there might be alliance between long distance cos and cable operators. ISVs, I believe, will probably join Long distance cos in this battle and support the cable operators.
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