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Current Topic: Telecom Industry |
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Rise of the Stupid Network |
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Topic: Telecom Industry |
11:33 pm EDT, Jun 28, 2004 |
Why the Intelligent Network was once a good idea, but isn't anymore. One telephone company nerd's odd perspective on the changing value proposition. The shift from scarcity to plenty is often the harbinger of new value propositions. Rise of the Stupid Network |
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The Paradox of the Best Network |
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Topic: Telecom Industry |
11:31 pm EDT, Jun 28, 2004 |
Just a few short months ago, it seemed that humanity stood on the edge of a communications revolution. Now a grim face replaces yesterday's optimism. Something fundamental is at work. The situation has been shaped by a paradox inherent in the very nature of the new technology: The best network is the hardest one to make money running. This is the Paradox of the Best Network. The Paradox of the Best Network |
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The COOK Report On Internet | June-August 2004 |
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Topic: Telecom Industry |
11:30 pm EDT, Jun 28, 2004 |
This three month issue explains why the prospects are dim for a full fledged recovery for telecom as long as the best effort paradigm remains as the only way of doing business. Some choice items include: Why the Hierarchical Peering Model Is Broken Telecom Bandwidth Provisioning Trapped in a Deflationary Spiral? The Network Is Not the Issue Korea and a Gigabit to the Doorstep Why Adding Bandwidth at One Link Just Shoves Congestion Elsewhere The COOK Report On Internet | June-August 2004 |
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Topic: Telecom Industry |
9:47 am EDT, Jun 24, 2004 |
"For consumers and the economy, the consequences could well be dire. The result will be higher prices and fewer choices for consumers, and fewer jobs, less innovation, and reduced investment in the industry." "We foresee a future with less choice for consumers." AT&T to Stop [Competing] |
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Topic: Telecom Industry |
9:28 am EDT, Jun 17, 2004 |
The Bush administration is abandoning the landmark 1996 Telecommunications Act, which spawned a new era of competition in telephone service. That is the net effect of its refusal to appeal to the Supreme Court a federal court decision striking down rules that gave local phone companies access to the Baby Bells' networks. Even more disturbing, the administration pressured the Federal Communications Commission, ostensibly an independent agency, to abstain from filing its own appeal in defense of its own rules. I find it very interesting, and also puzzling, that NYT takes such a strongly protectionist position on telecom ... The White House Hangs Up |
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Rate fight masks larger phone issue |
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Topic: Telecom Industry |
12:05 am EDT, Jun 17, 2004 |
Consumers are rapidly switching to wireless phones, the Internet, and cable systems for communication. New rules could [will!] accelerate the technological shift. "This gives the local telcos the opportunity to strangle themselves in their own copper networks." For eight years the Bells and their rivals have battled over control of the old circuit-switched network, and even though the Bells appear to have won that war, it is becoming irrelevant. It's not especially creative, but it is destructive, and that's what we like to see. Rate fight masks larger phone issue |
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High Court Allows FCC To Throw Out Phone Rules |
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Topic: Telecom Industry |
12:00 am EDT, Jun 17, 2004 |
AT&T: "This confirms that the Administration has set the industry on a path to higher prices, less competition, fewer jobs and depressed investment." MCI: "If wholesale rates go up, we will have to look at raising rates or pulling out of markets, or possibly both." Bah. Anything to hasten the inevitable telecom death spiral gets my vote. High Court Allows FCC To Throw Out Phone Rules |
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Defending Phone Competition |
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Topic: Telecom Industry |
9:13 am EDT, Jun 4, 2004 |
I'm glad to see NYT interested in telecom, but ... Local phone rates across the nation may soon soar if the Bush administration fails to come to the defense of FCC rules aimed at promoting competition. What? Local telcos would be crazy to raise rates, as long as they have a desire to stay afloat. Higher prices would only hasten the departure of their already shrinking customer base. Of course, if the government continues to allow failed telcos to "reorganize" under Chapter 11, they have every incentive to collapse under their own weight and emerge, debt-free, to continue beating each other senseless in the marketplace. The Savvis purchase of C&W assets, and the MCI restructuring, among others, are reigniting the telecom death spiral. If the NYT is looking for a telecom hobbyhorse, this should be it. Some 20 million American households no longer rely on the local phone company for local service. The Baby Bells now argue, prematurely, that the current regulatory arrangement is no longer needed because new technologies like wireless and cable telephony offer plenty of competition. They also argue that lease rates set by some state regulators are so low they are being asked to subsidize competitors, a claim belied by their strong financial performance. Strong financial performance? Citations, please! Any evidence suggesting "strength" should receive the most stringent scrutiny. And it's not meaningful to look at wireline voice in isolation. The dwindling profits in this sector are the only support beam propping up an entire industry at risk of collapse. Defending Phone Competition |
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Qwest and MCI Break Impasse on Network Leasing Rates |
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Topic: Telecom Industry |
9:44 am EDT, Jun 1, 2004 |
As the Bush administration considers whose side to take in the lobbying war over the leasing rates, top executives from both sides decided to participate in the discussions in order not to offend government officials and regulators. Participants in the discussions said that the talks have left both sides far apart, with the exception of Qwest and MCI. Qwest and MCI Break Impasse on Network Leasing Rates |
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Trying to Revive Struggling AT&T |
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Topic: Telecom Industry |
9:41 am EDT, Jun 1, 2004 |
The problems facing the heir of Ma Bell are obvious to everyone in the industry, yet hard to grasp, let alone fix. And when AT&T finds a solution to one of its many problems, another struggle develops. AT&T's central problem is that its core long-distance business is eroding fast. "The thing is, this is a lousy business." Trying to Revive Struggling AT&T |
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