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

To: MikeM54321 who wrote (7378)	6/23/2000 12:46:00 PM
From: JGoren	Read Replies (1) \| Respond to of 12823

Competitive technical stuff aside, the way I read the article (correct if wrong), the telcos will now be able to offer DSL beyond the current 17,500??? foot limit. If that is proper interpretation, that is meaningful for a lot of folks who have been waiting for DSL service (I am 800 feet too far)at a reasonable cost.

To: MikeM54321 who wrote (7378)	6/23/2000 1:12:00 PM
From: lml	Read Replies (1) \| Respond to of 12823

Hi Mike: I think what the author was getting at is that the telcos will be able to deliver a more cost effective DSL to its subscribers and thereby be able to lower its cost to the $20-25 range. This will place obvious pricing pressures upon the MSOs who have been able to "beat out" telcos offering DSL in the same area purely on price. The average consumer who has had the "luxury" of choosing b/w DSL and cable modem access, IMHO, has opted for cable purely on price since, on average, DSL has been priced at approximately 80% higher than cable modem access. The way I read the author's comments is that the MSOs are going to be hard pressed to drive their pricing lower as the MSOs, IMHO, are more reliant upon additional cable modem access revenues to support their more tenuous balance sheet and income statements. Many MSOs have placed themselves under undue financial pressure to upgrade their plants and install new networking technology that extends beyond their local systems. Many are counting on a return on their investment through the realization of cable modem subscription revenues. But what will those revenues be? How great will their penetration be in face of a more price competitive and more ubiquitous DSL service? How much incremental revenues will they realize to pay for their huge investment if they are forced to drop subscription rates even lower, let's say to the $15 per month range? The foregoing is exemplary of the attitude that SBC, for example, has taken. In essence, their objective is to drive the MSOs out of business through basic cost economics. Is this a likelihood? IMHO, no, not really. But, what is apparent is that the less financially strong MSOs out there are going to have a real tough time competing, particularly when you consider the competition they also will face from the overbuilders and the DBS providers. As I always have said, we live not only in interesting times, but exciting ones as well.