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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (23975)	9/16/2000 11:57:24 PM
From: Frank A. Coluccio	Respond to of 42804

"And an interesting concept." It makes sense. This fits the new model for carrier hotels and colocation centers. Historically, carrier hotels and colos have been in the heart of the action, geographically speaking. Within very short distances, from the largest users and other carriers to save on, or eliminate, expensive T1/T3 loop charges and to be able to "hand off" to one another within the same sphere of commercial activity. An older model, resembling how settlers came to drive their stakes along railroad tracks, rivers and seaports in the past. Nearness to commerce and to one another, fostering economies that would not be possible otherwise, had they settled off into the distance. Today, certain tiers of carrier hotels that primarily facilitate meet-me and hand off functions, and colos for ISPs and ecommerce web hosting -- and let's not forget those server farms and storage areas --, can be located on the edges of metro areas, or off into the boondocks or across the country, connected by fiber optic back haul facilities. Of course, in the case of web based services the ubiquity of the net plays a large part in this too. But anywhere where rents and labor are cheaper is fair game to establish a site now. This time, instead of settling along seaports and railroad tracks, they are settling at the intersection of fiber routes. Come to think of it, those are very often alongside railroad tracks, too. Hmm.. It becomes a trade-off between real estate costs, labor, fiber IRU or OC-n costs, and tax abatements and other incentives being offered by states and munis looking to expand commerce in their territories. In so doing, they leverage the distance-neutralizing characteristics of fiber. Makes a lot of sense. And like you say, an interesting cocnept. FAC