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Stocks T / TyCom, Ltd.


Subject:  Re: Still pondering a purchase of TCM Date:  8/7/2000  10:38 AM
Author:  pknoerr Number:  7 of 136


Here is my opinion on this. I currently am invested in a similair yet different fiber optic company that will eventually be a competitor with TCM...... QWEST. QWEST is a fiber optic broadband company that has been expanding into the general telecom market ( Ie; Cellular, ISP, and now local via the former USW network. But until 1998, Q was really exactly what TCM is planning on being but landbased instead of transcontinental.

The general synopsis of the broadband market is that the transfer of data in the future (ie: movies and music via the internet, advanced internet graphics etc. not to mention business related needs) will eat all the transmission capacity availble. That is why Q has been laying thick OC-192 fiber across the country. Level 3, Williams Communications, GBLX and others are also building out optic networks to provide the broadband needed. The theory is that the needs will be so great that these broadband networks can't help but make moneyt due to the amount of info passing through.

But others think that there will be a glut of broadband on the market while the world figures out how to use it. Broadband is already becoming more of a commodity too, with LD carriers charging less and less a minute. Competition may force broadband to be sold a given price and everyone gets the same amount.

As a holder of Q, which was solely a broadband company that bought a LD company, started a Internet related division, and now is local, cellular, you name it. I wonder how TCM will evolve. GBLX had been doing alot of the same things too (until recently), they bought out Frontiers LD system, and went after USW.

There is alot of consolidation in the communications market these days. No doubt there will be lots of money to be made in the telecom arena, but will it be the sole broadband carriers? I'm waiting to see.


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