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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (46286)	1/7/2001 6:19:36 PM
From: Stock Farmer	Respond to of 77400

Yes - capex for the big regulated guys is going to continue. It must. Little known fact that RBOCs only really have capital to spend. They have it because their rates are tied to capex by law! This is the job of the regulatory authorities. It's kinda perverse, but if you follow the money, they only get the ability to earn revenue by spending capital. So of course they are motivated to increase capex. At least in the regulated part of their business. So they are over-incented to modernize like heck and then leverage these assets towards non-regulated activities. This drags along the unregulated guys who have to keep up with the Joneses. First it was analog to digital, now copper to glass. Same old same old. In the real unregulated world, where RoE and RoA seem to count, I think it wouldn't work this way - or at least not to the same degree. John.