SI
SI
discoversearch

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 : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?


To: Frank A. Coluccio who wrote (4921)1/30/1999 6:54:00 PM
From: ahhaha  Read Replies (1) | Respond to of 29970
 
No one comes forward because no one wants a free market solution. What is the free market solution? That can't be known. The market will work it out. How might the market work it out? Well, what is the problem?

The problem is that there is only one cable provider, that is, one provider of high speed service. That isn't true unless you imply that DSL won't do. I don't agree with that. Not everyone now or in the next several years wants or needs the potentiality of future cable. DSL for most is adequate.

DSL is not earnings positive, but it can become earnings supportive by generating activity which would benefit a DSL provider if they were positioned to receive it. That requires the provider diversify into ancillary businesses. An example might be SBC cuts a deal with AMZN to share revenue on every transaction generated by DSL installation in its local area. SBC has to choose those revenue enhancers which leverage off higher speeds. Maybe AMZN isn't such a good example, but buying from them over the net sure could use speed. DSL could be offered at $30/month, stay within its technological limits without provoking all the exponentially rising costs necessarily incurred when trying to go head to head with cable, and fill a valuable market niche . In this case the market is no longer unimodal.

Let's consider cable alone. TCI spent a bundle building the fiber plant. Why is that impossible for someone else? That's always the implied assumption: it can't be done. Yet, whoever does it, can put in high quality fiber instead of HFC, rig the system with state -of-the-art equipment, and specialize their delivery. They can choose what they want to deliver without necessarily having to carry tv and telephony. They could deliver the high added value services and amortize the project in half the time. That is competition. That is a market solution. That's not what is wanted. What is wanted is the eminent domain of socialism.

The anti-free market types say, "no one would do that, it's too expensive". The conclusion is reached by computing the cost to wire every house in the world in two weeks' time. A network can be wired little by little. Voila, in 5 years you break even on the entire capital cost by the incremental revenue stream. This requires big banks, big companies with big visions. Guess we don't have that anymore. We have big cry babies who cry for protection from government, from competition, and especially from free markets.

Bill Gates is worth almost $200 billion. He could easily peal off $30 billion and wire every house in the Pacific Northwest. It's chump change. We don't have Rockefellers, Carnegies, Morgans, men with vision, rather, we've got chumps who believe they need to save their wealth since they are sufficiently distracted to believe they will live forever, so they need that money especially in the year 9595.



To: Frank A. Coluccio who wrote (4921)1/30/1999 10:04:00 PM
From: Jay Lowe  Respond to of 29970
 
Sheesh, Frank. Why do you write these things? Now I I'll be staying up all night playing cognitive catch-up.

And ahhaha! Never stop! Keep on truckin'!

Ya'll rock.

How strange and new this will all be, how wide the span for new relationships, unthought potentials, and unexpected creations.

"pollai morphai tôn daimoniôn,
polla d' aelptôs krainousi theoi:
kai ta dokêthent' ouk etelesthê,
tôn d' adokêtôn poron hêure theos.
toiond' apebê tode pragma."

"Many are the forms of divine things,
and the gods bring to pass many things unexpectedly;
what is expected has not been accomplished,
but the god has found out a means for doing things unthought of.
So too has this event turned out."

"In vain man's expectation;
god brings the unthought to be.
As here we see"

-- Euripides, The Bacchae