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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?


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.



To: Brian Malloy who wrote (4283)6/23/1999 8:12:00 AM
From: Wally Mastroly  Read Replies (3) | Respond to of 6846
 
Radio report said board is meeting today - to sweeten US West offer.