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Technology Stocks : Williams Communications Group - WCG -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (226)	12/7/1999 8:28:00 PM
From: Frank A. Coluccio	Respond to of 609

Yes, Mark. Thanks. Their approach to wavelength leasing and routing, even if only to other carriers for the time being (in their capacity as a carrier's carrier, as you note) will have an effect on the rest of the industry. Beyond their leasing to other carriers and content providers, I see them beginning to do business directly with the larger private enterprises, at first, which very likely will lead to leasing wavelengths and sub-reduced slices of the rainbow to smaller commercial and governmental/municipal users, as well. As relates to colos, I don't know all, not by a long shot. What I feel may happen, however, is that we may reach a state of "colo glut" probably far sooner than we reach a bandwidth glut, due to the lower barriers of entry in colos (as compared to laying tens of thousands of miles of fiber along rights of way). There are only so many carrier hotels and principal colocation sites --as well as internet exchanges-- that can be justified within the established routes of the fiber barons, before one needs to go way out of their way, rather deliberately, in order to access them at some point, off the beaten path. You see what I'm saying, I think. Sooner or later, we reach saturation and water begins to find its own level. I don't know if WCG has serious intentions of entering this space at this time in a real estate sense. Certainly, they will indulge in allowing their carrier customers to colocate the specific wares which are needed to make their (WCG's) other services happen, but that's a different context of colo. In my opinion they needn't go into public coloing right now, and they wont, not until they get their fundamental fiber framework fully in place. If they take this approach, they would have a situation which lies in stark contrast to LVLT's strategy which was to leverage (optimize) their very long 3-year network build-out period through the creation of an extensive network of colos during. To each their own, I suppose.