Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Global Crossing - GX (formerly GBLX) -- Ignore unavailable to you. Want to Upgrade?

To: Rupert who wrote (1680)	9/3/1999 11:22:00 PM
From: J Gunn	Respond to of 15615

I agree with everything that you say. Long-distance for retail consumers is not where the growth resides. AT&T has been playing games with their retail customers for years. I know people who were still paying LEASE charges for their 45 year-old phones. DATA and VIDEO and GLOBAL GROWTH etc.,etc., However, being right is not enough. I think BETA is still superior to VHS. "How long, O Lord, etc" was a lament by the ISRAELITES!Wandered the desert for ??? many years? Let us be RIGHT and REWARDED NOW.

To: Rupert who wrote (1680)	9/4/1999 3:23:00 AM
From: elmatador	Read Replies (1) \| Respond to of 15615

The actual situation of the new generation long distance carriers is actually very simple. The price of a long distance used to reflect the cost of carrying it using line of sight microwave analog trunk routes and coaxial cable links. Newer digital technologies, SONET and fiber, cut the cost of carrying a call dramatically. Traditional carrier ATT didnt pass to their customers the fall in prices. They kept cashing in. (Compare that with the computer industry) tha passes the savings to customers via better and faster machines at lower costs) Since these new tecnologies provided lower barrier of entry, new generation IXC (public utilities that owned right of way provided the highways for fiber laying) implement their own networks and started arbitraging. As the prices of long distance calls approach the cost of carrying it, the new generation carriers business model is looking shaky. I expect the new gen IXC not play dead but allying themselves with the CLECs. The CLECs can leverage their caged equipment at the CO plus their new ADSL technologies to route data traffic to the new gen IXC now no longer arbitragers and ding the real thing. What the new gen IXC need is the traffic generated by the COVADs, Northpoints and Rhythmsnet of this world. Keep an eye on the Last Mile...