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To: Scrapps who wrote (5753)	3/17/1999 8:52:00 AM
From: Bill	Read Replies (1) \| Respond to of 9236

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. Isn't that what I said? Cable modems are the competition. So you don't really disagree with me. The fact of the matter is that ADSL is offered only in towns that have a 10% cable modem penetration. A defensive strategy by the ILEC built on fear of canabilizing there own second line business. That's why it's taking so long.

To: Scrapps who wrote (5753)	3/17/1999 1:12:00 PM
From: Daniel G. DeBusschere	Read Replies (1) \| Respond to of 9236

Scrapps- The ILECS (i.e. RBOCs) will crush the CLECs as soon as their political value diminishes. AOL forced the RBOCs to deal with the message "Either you install and operate the xDSL or we set up a National CLEC and do it ourselves!" The RBOCs will only react to competition and will not innovate in any way that impacts current revenue streams. That's what I say a free enterprise competitor would normally do when they have a commanding market position. There is nothing morally wrong with this strategy - it's just business. The biggest challenge is AT&T (i.e. TCI). The FCC sees this and gave them an exclusive based on a commitment to invest big time and set up a second model with critical mass. If I was running an RBOC, I would set up the separate subsidiary and build out a national data network that eventually would replace the regulated piece and stop bitching about the regs.