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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (5752)	3/17/1999 12:06:00 AM
From: Scrapps	Read Replies (2) \| Respond to of 9236

Bill from an historical point of view you are correct, however now things have changed for the ILECs (Incumbent Local Exchange Carrier)Note: ILECs & RBOCs are somewhat the same). At one time they had control over the access to the backbone, and could prevent anyone else, such as CLECs (Competitive Local Exchange Carrier) from utilizing the CO (Central Office) switch to connect to the backbone. FCC regulations were in their favor and went so far as to prevent others from bypassing the CO switch. We should keep in mind here…the original Phone company (Ma Bell) was built without having to compete because it was essential for the public good and was regulated as a public utility. In a sense the infrastructure of these Public Utilities belongs to the people…because in reality that is who paid for it. Now the FCC has changed some of these regulations and allows competitors to connect to the backbone either outside the CO, in the CO and in some cases to the switch itself. Thus we have competition for our communication dollars. With this competition we have choice of service provider and the type of service. Bill as you know ADSL allows for the ISP connection and the POTS (Plain Old Telephone System) line to work at the same time...hence no need for the second phone line for the Internet. And another thing which is happening…we can use the Internet for voice, this is VoIP (Voice over Internet Protocol). Now if I haven't confused the reader, one can see there is a means to bypass the local RBOC (Regional Bell Operating Company) once we are beyond the local loop, or it's possible now via cell phone or PCS if my information is correct. In any event for the ILECs there is a diminished monopoly and/or ability to protect it. FCC rule changes, Public demand and technology which is now available outside of public regulation is rendering the ILEC monopoly advantages ineffective or removing them all together. DSLAM(Digital Subscriber Line Access Multiplexer), which provides high-speed Internet or Intranet access over traditional twisted-pair telephone wiring through the use of ADSL technology. Provides simultaneous high-speed digital data access and POTS analog service over the same twisted-pair telephone line. Can be installed in the CO or at and ISP adjacent to the CO… With the use of a DSLAM…an ISP can now provide service over existing phone lines at a customers premises without the cost of a second line, all the while maintaining the simultaneous functions of both. You said that and are correct of course. But this is a point where I disagree with you. When you say in regard to the ILECs ”So the strategy has been to delay introduction of ADSL to all areas not served by competitors”. If we look at the xDSL rollouts from the likes of SBC, Bell Atlantic and others...we see them going head to head against the cable modem service providers. They are indeed headed for the mass market, AND…for all the obvious reasons any free enterprise type business having to compete would do. That bares repeating... for all the obvious reasons any free enterprise type business having to compete would do. As for the delayed introduction of ADSL to all areas not served by competitors. All companies have priorities and budgets, so we will have to wait for these new services if we live in the out lying areas or are beyond the maximum distance in copper where ADSL won't perform. As Tim or someone once told me on this thread when I complained about my connect speed…”that's the price you pay for being able to look out your window and watch the antelope and the zebras play.” Here is a glossary for anyone who cares to bookmark one: aware.com