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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 (5275)	3/22/2002 6:59:16 AM
From: elmatador	Respond to of 46821

The curious linkage is this: I just added the words in CAPITAL LETTERS: But the fly in the ointment is called "stranded assets." US electrical utilities (ILECS) have operated and invested for decades under a regulated system that required approval of capital investment plans, and a guaranteed rate of return. Shareholders bought into a system with, they thought, a high degree of certainty. Deregulation certainly changes that (as did the WOOPS (capital in the original) default, but that's another story). Newcomers like Enron (CLECS WERE) are entering the market with new technology and (BANDWIDTH) natural gas capacity, while existing large regulated (ILECS) utilities have to figure out what to do with billions of dollars of sunk investments in (CENTRAL OFFICES) powerplants (primarily nuclear) that just can't compete. natlogic.com Now the implications are, that all those billions were invested (in the telecoms case) in a totally different climate. Price was no objection, anything and everything was overengineered. Time constrains didn't exist. A single customer for a single supplier etc etc etc... Now if we have taken this industry and ported it to another track and made it compete, it would haven't even lined up at the starting grid!! So they went to Washington and said: "We can compete. But you have to give a lead shoe to every competiting CLEC." Washington FCC replied: "Ok put the lead shoes on them" The ILECs interpreted it in a peculiar way and hit every competitor ILEC with a lead shoe in its head. Look to the carcasses at the roadside. That's how the text becomes once re-written by Elmat. But the fly in the ointment is called "stranded assets." US ILECs have operated and invested for decades under a regulated system that required approval of capital investment plans, and a guaranteed rate of return. Shareholders bought into a system with, they thought, a high degree of certainty. Deregulation certainly changes that (as did the WOOPS default, but that's another story). Newcomers like CLECS WERE entering the market with new technology and BANDWIDTH capacity, while existing large regulated ILECS utilities have to figure out what to do with billions of dollars of sunk investments in CENTRAL OFFICES that just can't compete.

To: Frank A. Coluccio who wrote (5275)	3/22/2002 7:08:35 AM
From: elmatador	Read Replies (1) \| Respond to of 46821

The linkage is between telecom utilities and Telecoms utilities. Enron discovered that the Mafia operating in electrical utilities to be exactly the same type of Mafia that existed in the entered the telecoms utilities. It decided to apply the same model for both. Perhaps it have got away with the boosting of electrical utilities, but they made a terrible mistake. They took on the ILECs. And ILECS kill to live and live to kill. Enron was doomed even if Jesus Christ had a seat on its board and His 12 disciples were the accountants.