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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: telecomguy who wrote (4288)	1/19/2000 8:42:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 14638

I did not say nor did I imply that bandwidth cost to the carriers is free. However carriers will not charge for bandwidth and will pay for the cost of deploying that bandwidth by selling services. Get it yet? Here, I'll use your McDonalds example. Did you know that McDonalds makes 90% of their margins on the sodas? If you go in a buy a hamburger (.29 cents some days now) and fries McDonalds hardly makes anything after they include all the packaging and advertising. However, it costs them about two cents to pour that .89 cent beverage. They sell some things for next to nothing to get you in the door and make it up when you buy the soda. The more their competitors drop their prices the more McDonalds has to follow. OK, so carriers want you on their network.. they give you cheap and in some cases it will be free access so they can sell you services. Now, more to the point, new world networks are better able to deliver a wide range of services than old world circuit...and this is why the CLEC's and ISP's will win business and as they do the ILEC's and IXC's will have to do something. What do you think that will be? You see, you seem to have this perspective that if I'm in business I have to make the same margin on everything I sell...but some stores have things called "loss leaders" things that they charge less than it costs them for... and if competitors are giving it away...well, they will have to as well in order to get customers in the store. This is what we have in store for us in the carrier space. Incumbent carriers will be forced into this model by CLEC's and ISP's ...the same for which I provided anectodal evidence for... and again I stated that these were only two data points..there are tens more and there will be hundreds over the next few years. telecomguy, you might be surprised to find out that there are others in this industry that are as equally plugged in as you. Perhaps you should consider that - you may miss something very important. My comments and vision are far from "amatuerish". Now, I'll close this with one last comment. If you feel the need to continue to talk down to me then we can end this discussion here. It seems as though when someone disagrees with you you make it personal. It's clear that we have two very different views on what will take place over the next 10 years in the market. I guess time will tell... I suppose to prove my point I have to post every URL for every ISP and CLEC and MSO out there that offers cheap or free access. Well, I'm not going to waste my time. perhaps a little DD is order. Take a look around. OG