To: Brian Malloy who wrote (4283 ) 6/22/1999 9:15:00 PM From: RTev Respond to of 6846
And in non-takeover news, I just ran across this interesting bit. Seems there's a lawyer in DC who has identified what might be a profitable business: suing telecom companies that have planted fiber in disputed railroad rights of way:Telecom's Real Estate Problem cgi.pathfinder.com Highlights:...In their haste to install tens of thousands of miles of fiber-optic lines, telecom companies have paid millions to pipeline companies and electric utilities, as well as the railroads, for permission to use the rights of way. There's just one problem. The railroads and utilities often don't own the land they blithely leased to the telecoms for as much as $25,000 per mile. ... Qwest was originally part of the Southern Pacific Railroad. Before SP merged with Union Pacific in 1996, Southern Pacific's biggest shareholder, Philip Anschutz, spun off Qwest and got permission from SP to lay fiber along its right of way. Now more than two-thirds of Qwest's 20,000 miles of fiber runs along the Southern Pacific and other track beds. (Qwest did not reply to questions about right-of-way problems.) MCI and Sprint have placed more than half their networks along rail and utility easements too. How many fiber lines are in the wrong place? Ackerson [the lawyer who has already settled with AT&T in one case] says his research suggests that railroads own a third or so of the land where their tracks run; the rest traverses easements that limit what can be done on the land. ... But one expert at appraising the value of railroad rights of way says the issue is murky and will take scores of lawyers years to settle. "I've studied thousands of miles of railroad corridor," says Charles Seymour, an appraiser at Insignia/ESG in Philadelphia. "There are all sorts of defects in the railroads' titles to the land." Odds are good, however, that if anyone pays, it will be the telcos, not the railroads.