Frank & Thread,
Let me ask you (and any others) for your investment opinions on another related issue. It concerns the FCC and/or Supreme Court ruling regarding the local and long distance markets.
As we have recently discussed, the Telecom Act of 1996 was a big flop. It didn't work as intended. It didn't allow long distance carriers into the local markets, and consequently didn't allow local carriers into the long distance market. I think this is even becoming an issue that even the average US citizen is beginning to understand. IMHO, something is heating up recently concerning this debate and it has to get resolved. In other words, it's becoming political. I'm thinking we are on the verge of something getting accomplished after all the years of wrangling.
Needless to say, this wrangling, and fear of the unknown, has been a HUGE deterent to telco plans to do upgrades to their networks. Now this being an investment forum, I would appreciate your opinion on what would happen if the 1996 Telecom Act was rewritten and actually worked! Where do you speculate money would be spent, or who would benefit the most, in the mad rush for long distance telcos to get into local markets and local telcos to get into long distance markets?
My number one choice, as an investment, would ironically not be a telecom/data networking equipment supplier, but Qwest Communications. Unfortunately the exact same arguments you can use for QWST being an outstanding investment today (at around 30), are the exact same reasons you could have stated when the stock was at 46. Or even when it first went public at 15. It's a hard one to time.
Thanks,
MikeM(From Florida) |
