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Technology Stocks : Covad Communications - COVD -- Ignore unavailable to you. Want to Upgrade?

To: lml who wrote (66)	4/14/1999 7:46:00 AM
From: Frank A. Coluccio	Read Replies (3) \| Respond to of 10485

> I live in PacBell territory far beyond the current 17,500 ft tariff limit. I have access to COVD's IDSL via Flashcom ISP & access to the NPNT's same via another ISP -- if I wished.< Hi lml, from the sounds of this, it's apparent that the newer DLECs are becoming heavily entrenched in the older copper techs which the BOCs have to offer on a resale basis. Copper twisted pairs from the Central Office. This forms a base for them. I speculate that once this model is established for the competitors, and they have their status quo offerings, the ILECs will attempt to come out with an optically-based (in the feeder and distribution plant), and structurally separated full service DSL architecture of their own at some point. The latter will be for their exclusive use, shutting out all of the newcomers. That's what I see as a strong possibility down the road. What do you think?

To: lml who wrote (66)	4/14/1999 8:55:00 AM
From: Bill McCullen	Read Replies (1) \| Respond to of 10485

lml, Thanks for relating your first hand experience. Much of what you said reinforces my argument that though COVD, Northpoint, RTHM etc are leaders in a sense that they are first out with xDSL services they are inherently at a disadvantage because they don't own the copper. For the incumbents, the copper may be essentially "free" whereas the new guys have to pay $10-15 per month per pair. So what happens to margins for COVD if Pac Bell introduces IDSL for $30-40 per month? I also would argue that any ISP is going to want to make their service available through as many channels as possible, meaning all the DSL CLECs and the incumbents. Therefore, I don't buy the argument that the DSL CLECs have valuable ISP relationships since they are not exclusive. I live in Arlington, MA and currently can choose from Media One (cable modem) or RCN for broadband. In the near future, both Covad and Northpoint are supposed to move in to the area (though I am not sure if they will serve residences right away) and Bell Atlantic is promising to roll out DSL too. What do you suspect will happen to prices once this happens? Bill

To: lml who wrote (66)	4/14/1999 12:34:00 PM
From: Alan Bell	Read Replies (2) \| Respond to of 10485

lml, re: upper income consumer who can't get DSL today is screaming for it. I know, I'm one of them You may want to check with Concentric. In the bay area, they are offering LMDS wireless DSL service. They have transmitters on two local hills - San Bruno Mountain and Monument Peak - to cover most of the populated part of the area without the 16-19Kft distance limit. They offer DSL speeds for similar prices to copper based DSL which they can do because both PB and the clec are out of the loop. The flatter geography of the LA area may make this more difficult (it is line of sight) but you may want to check. I will respond to your other interesting points this evening. -- Alan