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Technology Stocks : AT&T
T 27.40+1.1%3:59 PM EST
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To: Mister T who wrote (203)3/4/1997 12:09:00 AM
From: Vladimir Zelener   of 4298
 
<< I also think if they can actually make those pizza boxes (wireless technology to bypass RBOC and access charges)work
to bypass the local loop I think that will have much
significance to their bottom line. >>

I have read that ATT needs to invest about $1000 a household, which I presume includes $400 for pizza box. With the interest at 10% and 5 years depritiation it translates into $300 a year per household a year. Leasing a copper line from a local Bell will cost less then half of that. In addition with ADSL technology the copper wire might be much better in terms of bandwidth. I can not figure out how ATT can compete with wireless approach?

The second point against this approach is the timing. ATT plans to conduct 30,000 households trial within a half a year. Lets say in a year they are ready to star the deployment. By that time RBOCs will offer xDSL services which definetly more capable then what ATT is talking about.
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