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To: pater tenebrarum who wrote (31512)10/26/2000 10:45:42 AM
From: chic_hearne  Read Replies (1) | Respond to of 436258
 
the entire telco industry is in dire straits...negative cash flows wherever one cares to look, and an insane mountain of debt beset the industry. in addition to that global overcapacities promise no improvement in margins for the foreseeable future.

What I can't figure out is how the f*ck they can be making any money off of me. I've got cable access for $40 a month, regardless of useage. I've got this running into a router with a firewall and that breaks off into 4 other computers. Between my roommates and I, someone is always on the net. Add to that that the installation was free and so was the modem. The first modem broke, so I got another one for free. This is just my local guy that is trying to make money off of this. What about the backbone guys? We probably use up $40 a month in electricity alone. One of my roommates has downloaded about 10K songs from napster, that bandwidth useage has got to be more than $40 a month? What about all the sites that give stuff away for free? How are they making any money? At 1 cent an ad, is that even enough to cover electricity for the site?

Take the example of the former telephone system. Those guys knew how to make money, but how were they doing it? I've remember getting $100 phone bills a few years ago.

IMO, there's just no way this industry can generate positive cash flow unless they start charging more money.