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Russ

02/02/05 11:02 PM

#4638 RE: SEBASS #4631

SEABASS..more input on this crucial issue

It is easier for GTEL to pursue overseas implementation of a STRAT based telecomm alternative because it is easier to partner with technological experts who have up to now lacked the funding to advance and grow in order to meet the needs of their consumers. Meanwhile, in the US, you have the BIG GUYS who are literally "threatened" by quick adaption of new, and up-to-now, unproven technology. Why? Because they are invested in what works now. Sure, they will dabble in progressive technological trends, but not very fast. Why? Because they have to re-tool and have enough time to diversify and prepare for the impact of new technology. This is just like the US based cigarette companies... as smoking becomes passe and non-smoking laws are slowly passed, the cigarette companies are given time to adapt and look for and buy other lines of business for alternative sources of revenue.

If STRATS are proven and can successfully deliver broadband internet access, the BIG TELECOMM's will need and take time to adopt this technology. Much like we are seeing with VOIP..it has taken at least four years for the BIG GUYS to adopt and offer this to their customer base. Vonage, for example, first introduced their VOIP products in January, 2001.

HDTV was first introduced 6-7 years ago...the governement has allowed 7-10 years for signal changes to occur.

You do, however, make a good point about Verizon where they would be able to reduce their costs if they adopt the new technology and then charge the same rates to consumers, resulting in better margins and profit. But, IMO, Verizon is NOT going to allow their current hardware inventory (over an estimated 150,000 cell towers) to go idle without a "fight." Instead, they are going to offer high-speed internet via cell towers...http://cincinnati.bizjournals.com/cincinnati/stories/2005/01/03/daily53.html

In either case, I think there is enough business for everyone. GTEL will have to find a niche in the US Market, probably satisfying needs of remote internet users. In that regard, I think the overseas market in underdeveloped countries is ripe for the cheaper STRAT approach because they have not invested as much in the expensive hardware that is needed today to deliver the service.