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Technology Stocks : Covad Communications - COVD
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To: Frank A. Coluccio who wrote (67)4/14/1999 9:48:00 PM
From: Bill McCullen  Read Replies (1) of 10485
 
Frank,

I don't see it playing out that way. Based on my understanding of TA96, the RBOCs are required to unbundle all network elements including DLCs and Fiber to the Curb, Fiber to the Neighborhood, etc, systems (though no one has figured out how yet). This unbundling requirement has inhibited investment in the local loop if anything.

I spent several years working on fiber based carrier systems for the local loop (FTTC, FTTH, ngDLC) for a large telecom company based in NJ (give you two guesses who) and based on that experience I firmly believe that these systems are cost prohibitive for most applications (some new builds and dense urban rehab may be exceptions). LECs should make the most of their existing plant by offering moderate speed DSL services and if those are successful then they can spend the profits on upgrading to full ADSL or VDSL. Perhaps competition from COVD, RTHM and Northpoint will be the catalyst to force the LEC's hand in this direction

Bill
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