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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?


To: Raymond Duray who wrote (4275)6/21/1999 10:58:00 PM
From: Frank A. Coluccio  Respond to of 12823
 
Thanks, Ry.

The pricing chart is particularly useful because it demonstrates that the
costs of the terrestrial T1 pales in comparison to the costs of the Internet
port charge at the T1 throughput rate. Whereas the line itself only costs
$265 per month, the Internet access charge is $1,500.

Also note how the vendor lumps all of the capital costs into the first year
totals, so as to make their bottom line look much better. Ordinarily, one
would examine such a tradeoff by showing discounted five year flows,
depreciated annual costs, break evens, etc.

I'm not saying that the T1 is a better deal, only that the spin in this
case is so blatantly apparent.

Regards, Frank Coluccio