Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. De Paul who wrote (3764)	5/18/1999 1:31:00 AM
From: wonk	Respond to of 12823

Do you have any idea what the cost to convert to digital will be for them? Will it turn out to become the albatross I refereneced or am I all wet there too? Except in largely rural areas, most carriers are running dual analog/digital systems. The carrier takes some of his analog channels and converts them to digital. Dual mode handsets default to digital, and scan for analog if no digital channel is available. With the proviso that I have not seen a set of full blown vendor quotes in some time, no I do not think the conversation to digital, either the ongoing one or a future one if the digital standards converge, will be an albatross. Stating the obvious, the carriers moved to digital for the capacity enhancements and secondarily for the enhanced services (the market for which was quite speculative when the clamor for digital broke out). The interesting thing - or perhaps not so interesting and exactly as one would expect - was that there was basically little difference in the cost per minute of delivered capacity (expressed in erlangs) amongst analog and the various digital flavors. Some would argue that one digital flavor will win out and that those choosing wrong will be forced to convert, at minimum, diminishing their overall enterprise value relative to their peers. Over time, I have come to believe its all a tempest in a teapot (having at one time had very strong views on the "right" technology choice). Some companies have chosen to pay now for future capacity, other have chosen to pay later. On a net present value basis, making the "wrong" choice does not seem to be a company breaker. Perhaps not so good for one's career prospects when the time comes to convert... fwiw ww