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To: Mahatmabenfoo who wrote (171547)	10/10/2002 10:27:01 PM
From: The Ox	Read Replies (1) \| Respond to of 186894

You do understand that the playing field changed on many of the CLECs and other failed companies which are included in the vast generalization of the dot.bombs. Numerous companies were created that required massive funding during their initial startup phase. Many of these required a minimum of 5 years (and many required even more than 5 years) worth of funding to reach a critical mass which, once reached, would justify the heavy costs needed during the initial startup phase. These companies went to the market for funding and were very clear on the long term aspects of their business models. The market jumped at the opportunity to fund these companies because of the potential they displayed in their business models. Many of these companies did not deserve to fail as it was the market that changed - not their business plans. The capital market for these ventures dried up and in many cases, this is what caused them to fail, not the fact that they weren't earning any money. Combine this with the stonewalling by the RBOCs - which are now just starting to be slapped on the wrist by the FCC. There were many viable companies/business models that have been driven out of business due to capital market conditions. You are correct in pointing out that most, if not all of these companies failed because they didn't earn any money. However, their business models clearly indicated that they wouldn't make any money during their startup phase. A phase in which these companies were required to spend huge amounts of money to build infrastructure and amass customers. The RBOCs recognized that without their assistance or commitment, these CLECs and other startups were doomed to failure. The RBOCs also recognized that these startups were going to eventually take away their goose that was laying the golden eggs because these companies were going to provide a better service for a cheaper price. A double whammy. High speed DSL service for $50 to $80 - versus the cost of a RBOC T1? Talk about a golden goose!