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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (23377)	5/5/1998 9:43:00 AM
From: Bill	Read Replies (1) \| Respond to of 36349

Thanks for your response. Directionally, I think you touched on the full scope of cable cos' vision. However, I can't get over the historical evidence that small steps are more likely than big leaps. Remember about 5 years ago how the cable cos were going to take all the local voice traffic away from the RBOCs? Remember how the RBOCs were all going to take video away from the cable cos? True, the larger MSOs have CLEC subsidiaries. But, IMO, that doesn't give them a big advantage over another well-funded CLEC. The regulatory environment for the MSO is separated from that of the CLEC. And as you point out, new/different facilities are required. In effect, they operate as a different company. As such, it is unlikely we'll have mass deployment of integrated voice/data/video services from a single supplier any time soon (even though viable technology is emerging). However, aggregating xDSL at the head end is a distinct advantage when it comes to the loop reach issue (less than 18000'). Perhaps this will lead to ILECs wanting to co-locate with cable cos (like your HBO example). Now that's a twist! I think the MSOs have their hands full with a mission of getting their bases internet-connected using cable modems. They have a head start on the telcos, and if they're successsful over the next three years, the ADSL opportunity will be chopped in fractions. This shouldn't negatively impact PAIR's core business, but maybe they should consider buying a cable modem company. Regards, Bill