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To: BWAC who wrote (4501)	6/22/2001 12:17:35 PM
From: JakeStraw	Respond to of 5499

WCG responded to an article regarding the "bandwidth glut" also... Williams Communications CEO Refutes Bandwidth Glut and Offers Vision of Future Telecom Landscape biz.yahoo.com NEW YORK, June 19 /PRNewswire/ -- Howard Janzen, Chairman and CEO of Williams Communications (NYSE: WCG), today refuted a number of telecom industry myths, including recent bandwidth glut reports that failed to recognize differences between lit and dark fiber, during a keynote speech at The Goldman Sachs Emerging Telco and Internet Infrastructure Conference. Janzen also offered his perspective on telecom's direction, noting the emergence of a few survivors and increased opportunities for companies with focused, consistent strategies. ``It's simply not accurate to add up dark fiber in the ground and then say there is too much capacity,'' noted Janzen. ``Dark fiber in the ground does not equal usable broadband capacity. When we built our 33,000 mile next- generation network we strategically added more fiber than we needed immediately to prepare for the inevitable future growth in demand.'' Janzen added, ``It takes a great deal of time and capital to 'light' dark fiber. With a fully lit and operational network, Williams Communications provides end-to- end network services today, and is well positioned to turn up additional capacity as more applications drive traffic onto the network.'' According to industry analysts who cover the sector, broadband applications such as wireless web, video-on-demand and eCinema will spur demand in the near future, while demand for traditional telecom services continues to grow. ``You won't find many industries that can match the growth we're seeing as new broadband applications drive demand,'' noted Janzen. ``I believe we'll find marketplace fears about bandwidth glut are unfounded. There is strong and continued growth in the Internet and data traffic market and recent studies by industry analysts cite Internet growth rates approaching 100 percent per year.'' During his keynote, Janzen also discussed the changing telecom landscape and acknowledged that the market shakeout will continue. According to Janzen, the market will see continued vaporization of weaker players. However, as demand continues to accelerate and local access bottlenecks continue to be eliminated, companies such as Williams Communications, with compelling value propositions that address the changing marketplace, will thrive. Janzen noted that Williams Communications, with a stable customer base which includes high quality bandwidth-centric companies and a next-generation network completed last December has a significant advantage in surviving the telecom shake-out. ``It is ironic that the market meltdown has actually created a bigger opportunity for us,'' Janzen said. ``Even the largest players in telecom don't want to spend capital in this environment, and yet they need network capacity to meet the surging growth in voice, data, and Internet traffic. We are perfectly positioned to meet that need by providing a network outsourcing solution today, and with funding that carries us into 2003 when we expect to be free cash flow positive.''

To: BWAC who wrote (4501)	6/28/2001 9:40:37 AM
From: JakeStraw	Read Replies (1) \| Respond to of 5499

The Fed Bows Out Of The Picture internetstockreport.com June 28, 2001 - Yesterday's announcement from the Federal Reserve on interest rates was remarkable in that it contained nothing positive for investors. The Fed cut the Fed funds and discount rates by only 25 basis points each, ending a string of five 50-basis point rate cuts. At the same time, the accompanying statement contained none of the positives, such as strong consumer confidence and home sales, included in other recent statements. And the Fed gave no hint this time that it is willing to cut rates between meetings. "The patterns evident in recent months - declining profitability and business capital spending, weak expansion of consumption, and slowing growth abroad - continue to weigh on the economy," the FOMC said. "The associated easing of pressures on labor and product markets are expected to keep inflation contained." That statement - a weak economy coupled with low inflation pressures - seems to argue for another 50 basis point rate cut. So why didn't the Fed deliver? One answer is that the Fed's inflation hawks, who have become more vocal in recent weeks, are beginning to assert themselves. Some FOMC members have expressed concern that the Fed's aggressive rate-cutting could spark inflation. Yesterday's 25-basis point discount reduction was requested by only seven of the 12 regional banks, which have been concerned about the 50-basis point actions pushed by Chairman Alan Greenspan. Another answer is that the Fed is simply running out of room to cut rates. The 3.75% Fed funds rate and 3.25% discount rate aren't too far from the 3% level reached on both rates in 1992-1993. The Fed wants to hold back something in case the economy remains persistently weak or worsens, and to go lower than 3% would take short-term interest rates below the rate of inflation and to a level not seen in 40 years. The third reason is that the Fed probably wants to give the 275-basis points in rate cuts since the start of the year time to work. As we pointed out two days ago, businesses have a tendency to put off new investments during Fed rate-cutting cycles in the hope that rates will get even lower. By signaling an end to the most aggressive part of the easing cycle, businesses could be forced to implement delayed capital spending plans. And right now is about when the first rate cuts should be starting to be felt. But whatever the reason - and all of the above likely played into the decision - the result is that the Fed has now removed itself from the picture. Investors will now be watching the economy and corporate earnings for signs that the rate cuts are beginning to work. Two straight declines in weekly jobless claims and stronger than expected durable orders and consumer confidence are a start, but a rebound in economic readings in February turned out to be a blip in a bigger downtrend. It will take more than a week of data to signal that the bottom for the economy is in. And technology and manufacturing remain mired in recession. In the short run, the Fed's admission that things are bad and that it has done about all it can do to help might spark one of those perverse market rallies that tend to occur after all the bad news is out. But for any gains to be sustained, the economy and corporate earnings will have to begin to show improvement.