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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (10935)	4/12/2001 11:20:35 AM
From: Frank A. Coluccio	Respond to of 12823

Mike, if you think about it it makes a lot of sense. Most CLECs attempted to go in and compete on a me too basis, not offering anything in the way of value-add or differentiated services. When you examine the delta in economies of scale for offering the same service, it all falls into place. Not to mention the cross-subsidization that occurs that allows the incumbents to loss lead where they have to, while making it up somewhere else. The ILEC is the facilities-based utility that delivers ramps to the end point. Until another 'utility' type facilities based provider comes along, competitors may stand a better chance competing at the upper layers of the stack, such as voip in the future by pointint their packets at an independent [soft]switch solution, for example, or to an enhanced service "portal" [geesh, I still hate that word... can you imagine using the words portal and paradigm in the same sentence? yuk...] site, but all the while, still attached to the ILEC's umbilicals. To continue to compete on resale margins, however, will continue to be a hard game to win. Some have argued that line sharing for adsl services is the answer, because it allows for better margins. Any comments on this?