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

To: Softechie who wrote (40345)	3/13/2002 9:16:18 AM
From: T L Comiskey	Read Replies (1) \| Respond to of 99280

High debt in telecom... "The building binge also extended to dozens of upstarts providing alternative local phone and Internet service. Most have since gone under. And six national players in the wireless industry rushed to assemble cross-country networks that most agree created a glut of competitors. Huge Debts To pay for it all, telecom companies took on huge debts. Since 1996, telecoms have borrowed more than $1.5 trillion from banks and issued more than $630 billion of bonds, according to Thomson Financial, a data company -- topping all other industries. By late last year, it became clear that growth was slowing significantly, thanks to overcapacity, price wars and slowing usage. For instance, WorldCom's fourth-quarter data revenue, once a reliable source of double-digit growth, was down more than 5% from the previous quarter, shocking some analysts who expected big gains." Message 17191306