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To: MSI who wrote (136505)	1/3/2002 5:16:03 PM
From: GST	Read Replies (1) \| Respond to of 164684

Hi -- I appreciate your point, but I beg to differ on the implications. The first implication is that fiber itself is not the place to be because it is a commodity in over-supply. The second implication is that broadband pricing is likely to go down as fast or faster than the market is expanded -- with relatively little profit growth even though business picks up. The comparison to long distance is an apt one -- as you say, the advertising and billing expenses dominate. The question in broadband services is this one "will there be competition and what does that imply for pricing?" Given the increasingly lower barriers to entry thanks in part to the bandwidth glut, I think the answer is that there will be plenty of competition and it suggests that prices will go down sharply in coming years.