Is telecom infrastructure peaking?

[Dave Farber <dave () farber net>]

Begin forwarded message:

> From: dewayne () warpspeed com (Dewayne Hendricks)
> Date: January 20, 2010 9:59:43 AM EST
> To: Dewayne-Net Technology List <xyzzy () warpspeed com>
> Subject: [Dewayne-Net] Is telecom infrastructure peaking?

> Is telecom infrastructure peaking?
>
> [Commentary] In Washington, things may finally be starting to happen  
> that will affect the creation of advanced information  
> infrastructure. This follows a year of mostly words, minor symbolic  
> actions, and procedural walkabouts. A paltry one per cent of the  
> federal economic stimulus money had been allocated to broadband  
> communications. Of this, a year later, the first small grants are  
> now trickling out, just as the economic crisis has hopefully turned  
> the corner. But a second concrete activity is approaching -- a plan  
> by the Federal Communications Commission on how to fill in the white  
> spots on the geographic and social maps of broadband penetration.
>
> We should keep in mind that each new infrastructure industry goes  
> through a cycle -- early experimentation, accelerating growth, a  
> flattening out, and eventual decline. All American infrastructure  
> industries had their day in the sun, followed by a pronounced  
> decline in investment. Soon, it will be the turn of communications  
> infrastructure investments to slow, mature, and even decline.
>
> For infrastructure technology companies this is not a positive  
> outlook but a wakeup call. They had hoped for an ongoing growth  
> scenario, not declining investment levels by their best customers.  
> Their business model will have to move to the edge of the network,  
> to users and applications providers, and to less mature markets. But  
> it is positive news for network providers because their need to  
> invest declines, which improves their bottom line and lowers  
> consumer prices in the long run.
>
> <http://www.ft.com/cms/s/0/00353664-0540-11df-a85e-00144feabdc0.html>
>
> Courtesy of the Benton Foundation <http://www.benton.org>RSS Feed: <http://www.warpspeed.com/wordpress 
> >



-------------------------------------------
Archives: https://www.listbox.com/member/archive/247/=now
RSS Feed: https://www.listbox.com/member/archive/rss/247/
Powered by Listbox: http://www.listbox.com