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Technology Stocks : (LVLT) - Level 3 Communications -- Ignore unavailable to you. Want to Upgrade?

To: Allen Brown who wrote (1231)	8/12/1998 8:39:00 AM
From: Frank A. Coluccio	Respond to of 3873

Allen, that was a very interesting premise you presented. However, it assumes that the bigger companies, namely the incumbent LECs (and even some of the larger CLECs), are lacking in the kinds of capacity that the new entrants present. That, in many cases, is not the case. Especially in the cherry picking markets that the new entrants penetrate almost exclusively. In those situations the RBOCs have plenty of glass in the ground. What they do not have (or haven't figured out yet) is the means of deploying it under the new bandwidth economic model that the LVLT's MFNX's and the other Fiber Barons are poised to demonstrate in short order. What they need is an infusion of philosophy and new marketing savvy at some point, prior to the markets changing significantly, and not necessarily an infusion of additional transmission capacity. They've already got plenty of that. More than they know what to do with, apparently. The ILECs are still motivated to conserve on bandwidth, i.e., restricting its supply, thereby maintaining a pricing structure that has worked very well for them up until now. And, as dominant carriers in the markets they serve, I would hasten to add that they are still bound by an obligation to offer services of the traditional genre that are still universally accessible by rudimentary telephone instruments, and ones that do not necessarily lend themselves to leading edge IP based services. In this respect, and it's ironic if you think about it, they have been burdened with continuing to support the devices of their own strategy. Namely, POTS. Regards, Frank C.

To: Allen Brown who wrote (1231)	8/12/1998 9:37:00 AM
From: SDR-SI	Read Replies (2) \| Respond to of 3873

Allen: I agree with Frank. The various LEC's and RBOC's have to give themselves a "technological enema" and prepare themselves for a new way of thinking about and providing the products and services they have provided for many years. Even in the most modern-thinking companies, making such a change in approach is very difficult. It is certainly worse in companies that have been regulated and managed on a "don't take risks, don't move quickly" basis for many, many years. They eventually will do it or THEY will be swallowed up. IMHO that there is a relatively short window of opportunity for the LVLT's and WCOM's to take advantage of their inertia. I also think that the talent in such companies as LVLT and WCOM puts them at a great advantage in being one of the ultimate survivors. Steve