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Technology Stocks : Cascade Communications (CSCC)

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To: Tera Bit who wrote (1869)1/25/1997 5:05:00 AM
From: Dwight E. Karlsen   of 3743
 
Daniel: Incidently, the FCC protecting ISP's from having to pay access fees to the telcos is probably one thing taking a bite out of CSCC's sales. Sooner or later the Internet will not be looked at as an "infant industry" by the FCC, and then the ISP's will have to pay access fees to use the telco's switches for internet traffic. Right now, from what I have read, the ISP's are getting something of a free lunch, on the backs of regular residential service rate payers and the telcos. When the ISP's have to start paying access fees, then the telco's can afford massive upgrades, bringing a wave of extra growth to companies such as CSCC. I don't remember exactly what fee is being waived, but there was a good article about it recently in either IBD or WSJ. Of course, once protection is removed from the ISP's, you-know-who is going to have to start paying more for internet access.

If someone else more knowledgeable about this than I could elaborate, it would be appreciated.

Dwight
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