Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Trey McAtee who wrote (12822)	8/26/1998 3:53:00 PM
From: Leroyt	Read Replies (1) \| Respond to of 21342

trey, Thanks for the explanation. It sounds accurate to me. The FCC has tried to open up the markets by requiring the ILEC's to share their equipment (co-location as I understand) with the CLEC's. I can understand what the ILEC's wouldn't want to invest their OWN cash to just have to share it with others. To encourage investment in DSL, the FCC decision makes complete sense to me. It sounds good for our (WSTL) team. thanks and later, leroyt

To: Trey McAtee who wrote (12822)	8/26/1998 5:32:00 PM
From: Vladimir Zelener	Read Replies (1) \| Respond to of 21342

Trey, I still do not see how ILECs can benefit from FCC ruling. I think FCC talks a lot about allowing RBOCs to set up digital networks, but when it comes to looking closer the conditions imposed by FCC (spinning off subsidiary, and allowing competitors to have the same deals as a spinned off company) negates all the benefits IMO (maybe this is why BEL is not happy). The only way for RBOCs to make money and keep the local monopoly going in according to this ruling would be : 1. Set up subsidiary CLEC with inflated cost base 2. Lease them local loops at highest tarrifs allowed (lets say $30 to $50 a month for local line) 3. Sign a contract for leasing CO space at the highest possible rates In this case the created subsidiary CLEC will operate at great loss, while mama RBOC will collect the profits. This will block any independent CLEC and LD and ISP from getting into same kind of arrangement. I am not sure that RBOCs will be able to get this schem though though. I am sure LD and ISPs and independent CLECs will chalange such an arragement in Federal court, don't you?? <<now, they wont have to do that. the ILECs set up a CLEC subsidiary, which then negotiates a deal with the ILEC, just like any other CLEC. >>