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Technology Stocks : Advanced Fibre (AFCI) ** IPO
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To: CChalmers who wrote (1416)12/17/1998 5:44:00 PM
From: Bill McCullen  Read Replies (1) of 3299
 
This could be relevant but only time will tell. This article is about Sprint's Long Distance division and it is a good sign, and not surprising, that they are going to abandon re-sale (a proven money loser) and look to construct their own local broadband networks by leasing loops from the ILECs and installing their own HW in ILEC COs.

The article does not say whose HW Sprint will use to provide xDSL services and whether or not they plan to offer other telephony services. This is relevant because if they are going to do ADSL only there are literally dozens of ADSL system vendors out there and AFC will be one of many. But, if they want to do other telephony services (POTS, ISDN, specials), AFC would have a leg up since they support xDSL from a DLC platform that supports a full range of telephony services. Other DLCs are not as flexible.

Another factor is the relationship between the different divisions of Sprint. I do not know how closely Sprint-Long Distance and Sprint-Local are connected. If they talk to one another (don't be surprised if they don't) then LD might be persuaded to use AFC by Local. They might even be able to get better pricing from AFC as volume would go up.

This could be good news for AFC but it depends on the above unanswered questions and the timing of it all, IMHO.

Regards,

Bill
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