 sweintzPremium
join:2002-03-01
Chester, CT | Telecom Investors... Telecom Investors need to get their heads out of their @sses.
If they want the company to be competitive at all, in any way, shape, or form in the long run, and wind up with stock that is still worth something 10 years from now, then they need to bite the bullet and accept the fact that, for the time being, ANY telecom that is forward thinking should be posting NET LOSSES. Big ones. Unless they have a HUGE war chest that they can raid.
Right now technology is changing. Any telecom company that wants to remain in business in the future needs to be dumping mega amounts of money to migrate their infrastructure away from circuit switched technologies, retrain all their staff, and start deploying a packet switched infrastructure. They need to bite the bullet and start deploying fiber direct to all their customers. Not just to the curb, but fiber to the premises.
That is where the future lies. Any telecom company unwilling to accept it has a dim future. |
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| I can agree with that. Either they have realized it and are just riding it out for whatever they can still get, or they have very bad analysts! I always thought a good approach would just be to cut your prices and keep your customers rather than see them migrate. Kind of reminds me of the movie theater, if they would just lower the price on popcorn and soda a bit sales would most likely increase to the point of outperforming higher prices to begin with. The reason I think is simple, people know they are getting taken for a ride and do not like it. Same thing with copper, I mean in all honesty when was the last time you saw the copper lines swapped out (ie...they are more than bought and payed for)? |
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| reply to sweintz
said by sweintz:Telecom Investors need to get their heads out of their @sses. If they want the company to be competitive at all, in any way, shape, or form in the long run, and wind up with stock that is still worth something 10 years from now, then they need to bite the bullet and accept the fact that, for the time being, ANY telecom that is forward thinking should be posting NET LOSSES. Big ones. Unless they have a HUGE war chest that they can raid. Right now technology is changing. Any telecom company that wants to remain in business in the future needs to be dumping mega amounts of money to migrate their infrastructure away from circuit switched technologies, retrain all their staff, and start deploying a packet switched infrastructure. They need to bite the bullet and start deploying fiber direct to all their customers. Not just to the curb, but fiber to the premises. That is where the future lies. Any telecom company unwilling to accept it has a dim future. Haven't you heard of Fios?
And there aren't too many companies who can afford to post six or seven figure losses repeatedly and A. expect be a viable investment, B. pay their employees' salaries let alone pay for training, and C. provide adequate customer support. All of those things require significant cashflow.
The reason why you see so much convergence in the industry today is because people overextended themselves in terms of infrastructure and could never recoup the costs. Build the network, get a few subscribers, sell out... that was the formula for many early telcos/ISP's, etc. and largely it did more harm than good in terms of prices and service to the end user. Profits = good service = happy you and me. Debts = poor service = mulitple migrations between providers = headache.
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vertiblog.com |
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 Aggie DanStop... Reverse That.Premium
join:2001-01-30
Frisco, TX | reply to zoebisch01
Maybe they are paid for in your area, but what about the copper lines running out to more rural houses? These are places where you've got lower income families with less disposable income to spend on extra phone features or long distance.
Their lines are not bought and paid for. Or rather they were bought and paid for but there is not going to be a positive return on the investment ever.
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Note : The statements made by myself are my own and not the opinions of my employer or of my coworkers. 15.81 GHz Crunching Power | The Ryan Foundation for MPS Children |
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Like the Bells dont have "signifigant cash flow". |
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fiberguyMy views are my own.Premium
join:2005-05-20
kudos:3 | reply to Aggie Dan
To this, I guess you aren't familiar with Universal Lifeline service - and yes, they are paid for by you and I who pay that little fee each month to cover thier costs. Also, you will find that alot of low income people generally buy more than they can afford in phone and cable.
So, don't discount the low income population. They often spend money in misguided areas. We are a nation where even the poor people have on average 2 televisions, a DVD player, video game console, Microwave oven, and OTHER luxuris that a "poor" person by definition would not normally have. Therfore, our large class of poor people still spend money in this area. There is a study out on what low income people spend their money on.. It made big headlines just a few months back. You may want to look for it on google. |
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