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 : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: E. Davies who wrote (19232)	1/24/2000 6:32:00 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 29970

Hello Eric, The following only amounts to conjecture on my part. I'd like to wait for the facts to be published before forming any hard opinions. But, for the sake of discussion, here goes. Last things first: "..he who grabs the customers first will keep them." I think that that is a stretch. With very few exceptions, new customers of any new broadband offering, including @home's, have previously been someone else's customer, first. If the new platform is faster, cheaper and better, it will attract new customers faster, cheaper and better. ---- A point which is made in the article which you may not fully be aware of or appreciate is that a great deal of fiber already exists in utility networks which is unused. I suspect that they will also escalate their use of optical ground wires now, too. These are grounding and support strands made of steel with hollowed out cores which permit the passage of several strands of fiber to the structures which they serve, usually extended from poles or in underground conduits in residential areas. BTW, if the utilities wind up being the ones to capitalize these builds, how many years do you suppose they will choose to amortize them over? That number will play large in the EBITDA calculus. No, I think we have a different model here than what we've been accustomed to in the past. While I don't have any idea what they are planning in specific terms, I would imagine that they are planning to use far less electronics in the field (like Lightwire 2), and a no frills approach to line terminating equipment. At their hubs they will most likely use off the shelf gigabit routers and switches. Most likely something that will not present any barriers to entry by the regular networking companies, in contrast to the cartel's insistence on head end and cable modem DOCSIS certifications.