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Technology Stocks : GX Investors Thread -- Ignore unavailable to you. Want to Upgrade?


To: M. Charles Swope who wrote (256)9/1/2001 11:40:41 AM
From: DWB  Read Replies (1) | Respond to of 586
 
A different take on that is that their business (i.e. providing extreme bandwidth and integrated services to MNCs) isn't driven by them lowering bandwidth prices, i.e. the "we will do it for less", despite the fact that they do sell it for less. The lowering of bandwidth drives increases in business to their customers, and therefore GX benefits from it. Just because they aren't out there actively driving bandwidth prices lower, doesn't mean they can't compete and/or sell at lower prices.

If you had the cheapest cost to create a good (say $1), and everyone was selling similar items for more (say $5), would it make sense to sell yours for $1.50 if you could sell all you had for $3? There has to be some thought behind the way in which you set your prices. But regardless, the elasticity of demand relative to bandwidth will benefit GX as more and more applications and customers make use of the lower prices.

DWB