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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: DubM who wrote (4530)	3/17/1998 11:36:00 PM
From: TheSlowLane	Respond to of 12468

First of all, let me say that I own UMG, so I have a vested interest in telephony over cable. That said, I think Armstrong is right. The cable networks are not there yet. There's no national footprint there. UMG has just started offering dialtone over cable in Atlanta with plans to roll it out to more areas this year and beyond. Even with their aggressive buildout, it will be a while before they have a significant presence. Also for the most part, these cable companies already have boatloads of debt, so I can see why AT&T is hesitant to leap into this particular mosh pit. Armstrong isn't going to pony up the money, he wants the cable cos. to do it by themselves. This is a similar challenge that @Home is facing, they are dependent on the cable companies upgrading their network to be successful. For the long term, I think it has possibilities. It's a facilities-based way of getting to the residential market without having to depend on access to the ILEC's wires to the homes. It is not a means for AT&T to bring competition to the local-residential market in the short term though. Just my opinion, of course. p.s. In three years time when we are all sitting on our yachts enjoying our Winstar proceeds...someone remind me to pour a glass of Dom Perignon for SteveG and toast him for his most excellent contributions to this thread. You are right Steve, at times it has had us all wondering, but not much lately. The fiercer the battle, the sweeter the victory, I guess. Cheers!

To: DubM who wrote (4530)	3/18/1998 5:40:00 PM
From: gauguin	Read Replies (1) \| Respond to of 12468

OFF TOPIC SOMEWHAT Dub, <What is T going to do-forget the local market> By the story you attached, are you referring to the residential market, which is where cable company assets would have the best play? You remind me of a potentially hair-brained theory that I have harbored, so here goes...Why does T necessarily need to be in the residential market directly? Armstrong might look at the margins of the commercial segment and decide to license/outsource the entire residential market to focus on the commercial/data business worldwide. By outsourcing residential he could potentially disproportionately reduce his overhead and get rid of the masses, also create a real focus for his organization. I know this is a WCII board, but I figured I'd get this idea out so that all those smarter than I about these things would tell me why it's stupid.