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Technology Stocks : e.spire Communications (ESPI)

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To: BGL who wrote (79)3/17/1999 5:27:00 PM
From: MangoBoy  Read Replies (2) of 471
 
<< 2. Qwest takeover potential -- I've seen this in the financial press, but I don't know who started it. Did they pick it up from the Yahoo board too? >>

Speculation started soon after QWST announced it was ratcheting up its local presence (http://biz.yahoo.com/bw/990224/co_qwest_c_1.html). Nacchio keeps beating the drum (http://cbs.marketwatch.com/archive/19990316/news/current/qwst.htx) so the speculation continues. Today's GBLX/FRO merger might accelerate the pace of consolidation as well.

<< 3. General takeover potential -- I don't really understand the significance of ESPI's installation base enought to believe this - Can someone explain it to me? >>

ESPI has local fiber loops in nearly 40 cities in the South and Southwest (http://www2.espire.net/networks/index.cfm). The idea is that QWST could hook these loops up to its national backbone and provide door-to-door service.

A related rumor has QWST taking an interest in or buying ARTT and/or WCII, to complement local fiber and DSL (COVD) in providing last-mile access to customers. Having the local fiber loops would make it much more economical to build out fixed broadband networks; the local fiber connects the various wireless hubs to the backbone.
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