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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: lml who wrote (2647)12/23/1998 3:25:00 PM
From: WTC  Read Replies (1) of 12823
 
lml- Reread the 12/17 ION announcement; you apparently have some confusion about what Sprint will build themselves.

The key paragraph says, <Sprint's plans include deploying broadband enabling equipment, such as digital subscriber line access multiplexers(DSLAMS), broadly in major markets, initially to 1,000 central offices by early 2000, ultimately spanning more than 1,600 central offices. Sprint will lease the copper wires connecting customers to the central offices (known as unbundled local loops) from incumbent local inter-exchange carriers.>

They are not planning to deploy any copper or fiber between ILEC central offices and customers. Now they intend to lease just the loops (previously they had a legal initiative to be allowed to lease the DSLAM slot and cards as well.) That means they intend to deploy the "broadband equipment", i.e., DSLAMS, et.al., themselves in great quantities very quickly. But, at this announcement juncture at least, they will not be leasing any cable plows.

It is hard to see how this initiative would create any market forces that would act as additional incentive for the ILECs to deploy more fiber in the subscriber plant. Perhaps it is more likely that Sprint will try to use the ION initiative to create some spin and leverage in the legal/regulatory arena. It could be a tactic for Sprint to cry foul at the ILECs and complain about shortcomings in the ILEC UNE availability and procedures. If that compliant registers, it might help them keep the ILECs out of their long distance revenue streams a bit longer.
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