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To: GraceZ who wrote (30699)	10/24/2000 1:28:41 PM
From: LLCF	Respond to of 436258

<In a declining margins environment the only companies that will stay afloat are those that can significantly contain or reduce cost. If Internetinfastructure can cut out several layers of cost between the manufacturer and the final user then it's as if they made money, right?> I'm not assuming margins are declining [although they probably are]... I'm just saying that folks seem to assume, that since GBLX's new fiber and CSCO's new router moves 100x more data for a similar price, that there is money made... and made by everyone AND at a higher growth rate than before. My point is CSCO only makes more money if they sell more of them or for higher prices... and the purchasers only make more money if it helps them cut costs they don't have to pass on to consumers or WILL [not can] be able to sell more product [more traffic]. So: 1.) I don't see where more "petebits" [as Gilder keeps talking about] moving down the pipe makes more money unless you can charge for it. 2.) If not, who's going to keeps spending the money on the infrastructure? DAK