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Technology Stocks : Winstar Comm. (WCII)

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To: limtex who wrote (9454)12/2/1998 1:31:00 PM
From: Bernard Levy  Read Replies (1) of 12468
 
limtex:

Regarding QWST buying WCII, I would rate it as highly
unlikely. The playbook calls for QWST to be purchased by
one of the RBOCS (most likely US West) as soon as the FCC
will allow RBOCs in the long distance business. In the
battle between IXCs and RBOCs, both are trying to
develop integrated local and long distance telephony
and data services. This will be achieved by the IXCs
gobbling all cable and CLEC assets, and by the RBOCs
taking over the fiber barons. If fiber barons and CLECs
were to combine, you would combine two businesses
with very high capital needs and high cost of capital.
The other way around, you get entities with low cost
of capital (RBOCs and IXCs) supporting the entities
with big infrastructure needs.

Best regards,

Bernard Levy
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