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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: energyplay who wrote (45745)	2/6/2004 8:25:43 PM
From: elmatador	Respond to of 74559

<<It is dawning on people that the economy is not as strong as they thought,>> Which is what Elmat has been drumming down here.

To: energyplay who wrote (45745)	2/6/2004 8:35:41 PM
From: elmatador	Respond to of 74559

<<..strong pressure mounting in Congress in both parties to do something to speed broadband deployment. I think you will hear some noise in the next week or two that will sound strongly deregulatory, which will support the theme Cody has been writing about. Should be good for equipment stocks.>> be very careful with any stock related to broadband. 1) RBOCs' fixed line revenues are going down and will go down even faster. VoIP and wireless eating into their revenue streams. 2) RBOCs need new source of revenues to offset their fixed line revenues. Their despair will only increase. 3) RBOCs have strong lobbying power in Washington. Are regulated by Public State Commissions and can get whatever they want, which includes imposing burdens in their competitors (CATV, Satellite, VoIP). Even the FCC is powerless gainst them. 4) RBOCs want to make as much os their obsolete local loop copper wires fast approaching end of its economic life. 5) While LU, NT, CSCO et alia will be salivating, investors should not. 6) Remember, now defucnt, Telecom Act of 1996 for a guidance on how those things develop. The side of the road is littered with the carcasses of: Rhythms, Northpoint, Covad and so it goes...