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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..] -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (1278)	8/10/2000 1:02:06 AM
From: Bernard Levy	Read Replies (1) \| Respond to of 1860

Hi Ray: I am not a bean counter, but I suspect there exists some optimum CapEX rate with respect to revenue that smart carriers adhere to (for some reason I get the feeling that QWST became profitable with far less pain than many of its competitors, or is it just Anschutz's deep pockets?). Equipment makers such as CSCO and LU are already engaging in very dubious equipment financing deals to support the habit of some of their most CapEx addicted customers (I am wondering what would be the value of a reposessed 2-year old router or switch). To some extent we are already seeing the effect of a decreased CapEx rate with T's decreased orders to HLIT. So, it is conceivable that the ``untouchables'' such as NT, CSCO or even JDSU will share the pain at some point. In spite of all the pain we are going through, it is fair to say that ultimately many telcos (particularly those in the last mile) should make essentially print money from the traffic on their built-out networks (isn't it what the RBOCs have been doing for the last 15 years?). With respect to SiGe versus GAas, I am not sure that SiGe is ready yet to work at millimeter wave frequencies (20 to 40GHz). However, there is no doubt that in general SiGe is a much cleaner alternative to GAas which is extremely toxic. Best regards, Bernard Levy