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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (6672)	3/18/2000 9:30:00 AM
From: MikeM54321	Read Replies (1) \| Respond to of 12823

lml and Thread- I still think this is a significant strategy by incumbent LEC, SBC communications, to build and OWN the upgraded Last Mile path to their customers. It's still kind of hard to explain to those that don't follow this battle between the CLECs and ILECs closely. But I'm trying. Basically this strategy by SBC is a way for them to spend the billions(!) of dollars required to deploy ADSL(or higher) speeds to the masses, without letting the CLECs climb on board a completed network with little or no risk. They are planning to do this by using FCC 99-238 to their advantage. Again, very similar analogy to AT&T buying up all the cable plants they could, and having the FCC okay them to spend billions to upgrade without giving the CLECs and ISPs free rides on their upgraded network. The reason this is significant? Well it's because if this strategy is successful for SBC, then suddenly every ILEC in the United States can have the confidence to start spending billions to get high speed links to their customers without fear CLECs will ride on their networks at no risk. Now this doesn't by-pass the CLECs entirely because the CLECs still have full access to the ILEC's customers who are directly linked to the CO via a twisted copper pair. In other words, all the customers out there currently serviced by a DLC, are NOT fair game for an ILECs upgraded service. Only the customers directly linked to the CO will remain fair game for CLECs because of the co-location rulings. I've read differing stats concerning what percentage of customers are directly linked to the CO vs those that go through a DLC or amplifier situation. It's somewhere in the neighborhood of 50-50 split. If I read the FCC ruling correctly, it appears the FCC is saying that if the ILECs are going to spend billions on NEW upgraded networks to deploy high speed service to their customers, then the ILECs deserve to own it outright. It's a significant ruling that has still garnered very little attention by the media. -MikeM(From Florida)