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Only Some Will Survive the Telecom Shakeout

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Only Some Will Survive the Telecom Shakeout
Topic: Economics 8:22 pm EDT, May  1, 2002

How do you tell the difference between the companies that are going to survive the shakeout among telecommunications service providers and those that will go belly-up?

Every CEO running a phone company has studied the problem. When some number of customers stops buying, a company's remaining customers often come looking for discounts. It's exactly this double whammy of falling demand and falling prices that has hit telecommunications providers. ...

Verizon will survive; Qwest is a definite maybe; WorldCom is on the ropes. ... Falling prices: $3,000 for an OC-3. A little over $12,000 for an OC-48. And dropping fast.

I read an article earlier this week that mentioned a price of $2,000 for an OC-3. Cheap, cheap, cheap! It wasn't too long ago that all you could get for ~ $2k was a T-1.

Only Some Will Survive the Telecom Shakeout



 
 
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