Regards
Craig
On Jul 4, 2016, at 3:27 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
Craig Birkmaier wrote:
Why do you continue to make fool of yourself?
Funny. I've been meaning to ask you this for a very, very long time, yet you
persist!
The reason DSL was built out was the huge potential market for
better ISP service.
You are stating the obvious, flowing out words for no good reason. The fact
remains, telcos were regulated under Title II, while cablecos were not.
Telcos did nothing to expand ADSL service, until they were allowed to keep
the ISP service within their network.
I know this, Craig, because I was waiting impatiently. The cable companies
had never been compelled to share their broadband service with anyone other
ISPs. It makes no difference what technical solutions (modems) were available
on the market, Craig. What is available on the market reflects what product
can be marketed. Cable modems became available soon enough, and could have
been marketed openly. That's NOT the issue here.
Yet the party didn't last. Relationships between CLECs and incumbent
telephone companies, or ILECs, were strained from the start. It often took
weeks for an ILEC to turn over a single DSL line to a competitor. Some
charged incredibly high fees to the CLEC to place the necessary equipment in
the central office. Then, they made it so costly for CLECs to buy the line
that there was virtually no profit margin available, unless the CLEC
overcharged its customers. At first, this strained relationship had little
effect because investors rewarded the CLECs based on the number of
subscribers they could attract. That resulted in a land grab not seen since
the Old West pioneering days. But in 2000, the economic landscape changed
dramatically, and the CLECs were a high-profile victim. The larger CLECs,
nearly to a one, have crumbled under the pressure of overcapacity,
frustrations in securing access agreements with incumbent telephone
companies, and tremendous competitive pressure both from cable TV companies
and from the same telephone companies that were ordered by the government to
open up their facilities.
Telecom stocks, which led the stock market boom of the late 1990s, have since
generated losses on paper believed to total more than $1 trillion. Investors
simply poured too much money into too many companies that, essentially, were
building the same networks. "The market was getting drunk on the juice we
were drinking," the Federal Communications Commission chair Michael Powell
told the New Yorker magazine in late 2002. "There's no question, we went too
soon too fast. Too many companies took on too much debt too fast before the
market really had a product, or a business model.