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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?


To: valuehunter who wrote (13677)1/25/1999 10:44:00 PM
From: sillen  Respond to of 19331
 
Today's ruling only helps small CLECs such as DCI. The fact that the FCC will continue to have the power to set wholesale prices discourages the RBOCs from unbundling their networks. And if no unbundling is done the RBOCs (baby Bells) are not allow to enter the long-distance market within their area of operation. This will stall local competition and leave DCI's long-distance market more profitable (less long distance providers = higher margins).

And while the local market competition is stalling more and more small players enters the long-distance market and niche market providers (DCI) will gain in importance. So when the time comes for the RBOCs to enter the long-distance market profit margins will be very narrow. The result of narrow margins and greedy RBOCs will be for the RBOCs to seek out new profitable markets. Such a market would be the European telecom market. To enter the European market without spending a fortune? Buy an established CLEC = DCI.

IXC, as a carrier's carrier, would probably gain more on having RBOCs leasing their bandwidth. Then again the market for data/voice/video transmission is huge and growing 30%+ every year so no need to be worried.

Later

Sillen