To: pass pass who wrote (1370 ) 7/17/1999 10:34:00 PM From: Raymond Duray Read Replies (1) | Respond to
Hi pp: With the improvement of last-mile access, backbone providers are in the driver seat. Perhaps you could enlighten the thread with your logical argument for this. As I see it, when every Tom, Dick and Sandoz is installing a network, the competitors in the arena are hardly all going to be winners and the losers will commoditize rates in order to merely survive. I see this backbone business become very low margin in the next few years. The undersea cable addressed a choke point in the global data network. That was the original genius of the move to put in AC-1. As did the PEC initiative, which aimed to take advantage of the outrageous tariffs of the PTTs in Eurpopa. What possible advantage does GBLX gain by being the beta tester for LUs unproven WDM wireless last mile solution? Do they have a customer list of folks who are already working with GBLX on last mile and need to upgrade? I know they do not. GBLX would have to first prove up the technology and then sell in an extremely competitive market place that, historically speaking, they only know by means of Mr. Annunziata's Teleport connection. I don't doubt his charisma, but I do doubt the company has the employee base to support such an undertaking. Just prudent skepticism, that's all.
