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

To: Alejandro who wrote (7889)	8/25/1998 12:07:00 PM
From: DreamWeaver	Respond to of 12468

<< Explain a little DW. >> Not much to explain really. The RBOC's keep getting bigger and bigger. If you believe the propaganda behind these mergers the pay off is in the cost efficiencies gained (economies of scale, force reduction, capital equipment cost advantages, "synergies", integrated services, etc.). Now the RBOC's talk about XDSL a lot, but their bread and butter right now I think is leased lines (T1/T3). I imagine the margin on that product is substantial. The RBOC's have yet to respond "competitively" to this threat on their Medium sized business market. What can they do ? How about discounts on T1/T3 service? As Bernard and others have mentioned, broadband wireless has a distinct cost advantage. But this cost advantage will work to WCII's advantage in the long run. In the short run WCII's spends piles of capital to build out a high quality network with the OSS's and employees to support it, while Mr. RBOC sits and waits for the precise moment to respond. We all keep waiting for this sector to be recognized and rewarded on Wall Street but it just is not happening. SteveG had a great CLEC chart going for the first 100 days or so of this year but it hasn't held up, perhaps he can repost it and we will see that a hypothetical mutual fund made up of WCII, TGNT, CVUS, ARTT would be a poor performer indeed. I believe in Broadband Wireless, but perhaps I have let my excitement of its long term capabilities taper my judgement, and my assessment of real world activities: Gates buying into cable and the boxes, All those satellites being launched and floating around up there, dismal LMDS auction, TI selling its LMDS equipment unit, ATT and TCI linking up, @Home taking off, the mysterious absence of WNP as a living breathing entity, equip. suppliers stock price declines, short seller increases, insider sales, etc. Reality check: As I write this Solomon Trujillo the Pres. And CEO of US West is on C-SPAN. So far he hasn't mentioned Broadband Wireless as a strategy (at least not that I have heard) Take care, and good luck to all.