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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 (36859)	11/25/2010 2:45:18 AM
From: elmatador	Respond to of 46821

Why legacy providers gorged on undeserved profits? Regulation! State ownership! Collusions! I can recall one CLEC saying: "you can build a ADSL operation with only the money the incumbents spend on golf tournaments." Those golf tournaments where the famiglia met to discuss their business issues. "Welcome to the world of commodities." That is the beauty of it! They provide a service in an open market.

To: Frank A. Coluccio who wrote (36859)	11/25/2010 4:26:31 AM
From: elmatador	Respond to of 46821

People call commoditization. I call Move volumes. You can sell 03 Rolex watches. You can sell 30 boxes of Swatch watches. Law of least effort. Rolex type economy: • You make a few units but with huge profit margin. • You can place your watching making operation near a farm. • No need to have big harbors, neither big roads, nor spew lots of smoke • Draw Megawatts of energy • Have roads clogged with trucks • You can use your landscape to sell tourism Worth the effort economy Swatch type economy: • You move volumes, little profit but sell by the container load. • Your operations dots the landscape, north, south, east and west • You invest hard on harbors, roads, bridges canals, oh, yes! You spew lots of smoke • You need to keep building additional power capacity to keep up with the demand • Gigagawatts of energy to be generated, transmitted and distributed • Have roads clogged with trucks and go seek oil after finding build refineries to fuel the truck fleets • You go for tourism elsewhere to get away from those constructions’ sites Rolex type economy middle class immobile Swatch type economy millions of shirtless get a job, and ascend to middle class.