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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: DenverTechie who wrote (2347)	11/19/1998 7:35:00 PM
From: lml	Read Replies (1) \| Respond to of 12823

Denver Tech: Thanks for the response. What makes you relatively certain that I am presently served by an old-existing DLC? Is this necessary given my "remoteness" from the CO? Is it possible there are no DLCs in my neighborhood? In conversation with the telco engineer for my neighborhood, he did indicate that IF there weas"indicated demand," for service such as a T1 connection, they would consider the purchase of a DLC such as a PairGain box, as he termed it. This is what was accomplished in the next canyon over, albeit it was a new gated community with an average home price in the $3-$4 million range. As far as depreciation, my neighborhood was developed almost 30 years ago. I would think any originally-installed equipt. is substantially depreciated by now. I think the other issue you raise (ROI) is a more likely factor to the investment decision. IMHO, it is no longer business as usual for these telcos. They are likely going feel the brunt of competitive market forces at their doorsteps in the not too distant future -- be it from other telcos, cablecos or the wireless companies. I think if my ILEC can be convinced of some threshold level of revenue stream by investing in new equipt. in my area, they will invest, and do so now. IMHO, I do see an advantage in the race for high-speed access for getting to the "end of the last mile" first. Whoever offers me high-speed access first, I would be more inclined to stick with them when the other competition enters the area (unless service is really bad). The telcos have an established internet access customer base. Do they want to risk losing this to cablecos or wireless cos.? Thanks for clearing me up on the switches & brand names. I thought I was incorrect on that note -- & you confirmed that. The bottom line is compatability of systems. Whatever DSL system PacBell has in place now is set. The question is what flexibility might exist to offer "remote" service to my area. If the flexibility does exist, then the question of investment capital must be addressed. $30K for the whole package? I've identified at least 450 homes in my area that would benefit from this service. Let's see. Assuming 60% market penetration --- that amount to about 270 homes. At about, let's say $80/month or $960/year, that amount to almost $260,000/year. Even if my numbers are overly optimistic, the ROI investment analysis is a no-brainer, IMHO. Unless I'm missing something. In sum, I am more concerned the technical feasibility of delivering DSL to my area. I live in an upper-income area of LA (Bel-Air). Money talks out here. If the money is situated in neighborhood, the telephone man will come -- if he can technically do so. Again, thanks for the info. Any comments to my response would be appreciated.