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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?


To: Frank A. Coluccio who wrote (4303)11/12/2001 4:27:12 AM
From: elmatador  Read Replies (1) | Respond to of 46821
 
They have their own territories. After Jan. 2002 they may invade each others territories.

After the build out of the privatization, the players are struggling with regulating problems. And the operator is doing some things wrong.

As you know Brazil has been divided into areas which the operators had contractual obligations to build infrastructure.

Now in order that each operator invade each others' areas, there is a requirement that they build infrastructure. At $2500 a line there are not many takers. The regulator ANATEL is trying to implement something that already failed in the U.S., i.e., competition by decree.

The CLECs are happy to skim the cream of the market and ANATEL want everybody to be a public service. Funny thing this one: There is not mandatory placement for gas stations and we have not witnessed here anyone complaining that they are running out of gas away from a gas station in this country.

What anyone is failing to look is sideways: The POTS market, that ANATEL is trying to protect, is already being served by wireless. Pure telephony is available. Business are the main beneficiary of the competition to serve them. Modern economy is based on telecommunications. So the economy as a whole certainly benefits form competition for the corporate market.

What ANATEL should be worrying about is the digitalization of the plant that has not been complete with the operators still running obsolete analog switches.