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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (12664)	12/29/2005 4:49:27 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 46821

That's all very interesting, if not also a demonstration of being overly confident of the prospect that they can escape the ravages of Moore's effects and the propensity of users to continue to roll their own in new and license-free ways. But there is another aspect to this story that needs to be understood if we're to compare what BT is doing with other major "carriers." Several months ago BT created a structurally separated division called OpenReach to handle local loop affairs, including making unbundled elements available to its competitors on equal terms with its parent. From Breaking the Bottleneck? By Rob Bratby, Partner, Mayer, Brown, Rowe & Maw -- BT will create a new access services division (openreach). This will be operationally separate from other divisions of BT." This new division will supply BT’s competitors with certain wholesale products on an exactly equivalent basis as BT’s internal supply of those products to BT’s other divisions (described as “Equality of Inputs”). -- BT will erect a number of internal chinese walls. -- BT has made a number of other weak statements of intent, relating to the supply of products not covered by the Equivalence of Inputs obligation, permitting operators to collocate for reasons not connected with local loop unbundling and that BT will deploy its next generation network in a way that will not exclude its competitors. -- BT will set up an internal compliance committee, somewhat misleadingly named the “Equality of Access Board”, to monitor BT’s compliance with its new obligations. signals BT’s intent to fully implement the undertakings. ---/snip One can read this relatively succinct 3-page special report at: mayerbrownrowe.com As an infrastructure play, I see the merit in 21CN, but from the standpoint of its being a vertically-integrated model serving voice and data to its customers in a business-as-usual manner? Well, I have the same reservations about it as I do about the RBOCs ability to see the storm through. I believe a lot will depend on their efforts to implement a number of constructs like IMS in combination with exclusionary tactics they elect to execute, regardless of whatever statements of obligation (such as the above) are cited today. If you look at the "Interesting Statistics" I posted upstream a bit at Message 22012652 , you will note that the "wireline" sectors represented are realizing reduced revenues, in part reflecting the continuing downward pressures on pricing I alluded to above. Of course, the surging uptake in wireless has a lot to do with this, too. --- With the exception of the local loop, "digitizing" the industry occurred some twenty years ago when they were well along in converting from frequency division multiplexed analog carrier facilities to digital PCM and T1/E1 T3/E3 alternatives. I'm a bit surprised that they used the term digitize as opposed to citing a migration to IP or convergence, instead. --- FAC