Global crossing in Bankrupcy, Lucent AT&T Verizon many smaller outfits on the brink, why? These companies borrowed billions to build out net infrastructure to offer low cost bandwidth. Is the market there? Eventually but not right at the moment. What is the future? For that lets look at a age prior to the information Age.
The Transportation market has many similarities, how to move lots of stuff fast and economically. First we had the canals that branched across Eastern America linking the Lakes and river infrastructure. These were built by issueing debt, selling shares and wild speculation, after some massive bankrupcies the sector was bottom fed by rich aquisitors and they did very well until the Locomotive Age, using land grants from the feds private industry built the intercoastal railways fueled by massive debt, speculation and public shares. After the routes were built the overleveraged industry went bankrupt with the few savvy outsiders moving in and sweeping up all the infrastructure with pennies on the dollar. The interstate System was next, built with public funds by private industry it marked a new way of doing business. A recognition that public facilities and infrastructure could be financed by the government to enhance private enterprise. This model pretty much deleted the locomotive transport model. The Airlines, initially regulated it kept prices high by ensuring that all america would be served but deregulated into the cack we have today, a mixed beginning and a truly mixed future, which brings us to the information age,
Every telco currently not owning local copper will be bust in the next 5 years, the debt mountain is too high so keep a watch and by stock in the companies that bid on the parts, they will be the long term winners.
thanx,
boxley