Corning, Inc. (GLW)

[DewDiligence]

>> I'd be interested to know why you think the FCC decision will have little influence on GLW's results. I'm inclined to think it is a significant positive for GLW. Sooner or later, the RBOCs are going to have to invest in high speed networks - fiber to the home or a faster fiber/DSL hybrid. The FCC's actions improves the RBOC's incentive to do so. <<

Rapoole: The degree of financial (dis)incentive for telecom carriers to build last-mile fiber connections varies widely from country to country. The market dynamics in other countries is unlikely to be greatly influenced by regulatory decisions in the U.S.

Even in the U.S., I do not see the FCC’s decision having a large immediate impact on FTTH. That’s because the economics of FTTH still depends on having moderately-priced high-bandwidth content which necessitates a fiber connection.

U.S. FTTH will be a big deal -- eventually. And the FCC decision helps somewhat by eliminating one of the roadblocks to FTTH’s adoption. But in the overall scheme of things, I do not see U.S. FTTH being one of the most important growth drivers for GLW. Regards, Dew

P.S. Wendella: thank you for your note.