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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Ron Dior who wrote (37807)	3/5/2002 10:07:45 PM
From: Softechie	Read Replies (1) \| Respond to of 99280

Ron, It has to have catalysts to consume all the excess bandwidth continuously. Internet has served its purposes and much lesser scale than original had thought. Telecom sector just came off one the biggest capital spending sector. I don't think any VC's out there will have the right mind or guts to pump in more money to buy equipments and lay down more fibers. That spending will have to come from operation. But before that companies will have to pay interest expense and debts. It's gonna be a while before they can get that ROI. Most telecom are operating in red in almost every quarter. Also they have to deal with debts rating agencies like Moody's which is very edgy due to Enron. Take a look at Qwest. They couldn't even get short-term loans. They had to draw down the $4B credit line. A ficking $4B and Moody's didn't like that one bit.