search query: @author Malik, O. / total: 5
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Author: | Malik, O. |
Title: | Wrong numbers |
Journal: | Red Herring
2001 : JAN 16, 90, p. 66-69 |
Index terms: | TELECOMMUNICATIONS INDUSTRY COMPANIES INTERNET COMPETITION |
Language: | eng |
Abstract: | This paper considers the problem of Telcos, which are suffocating under an avalanche of debts and inexpensive bandwidth. The new telecommunications carriers are following a "less than zero" business model, selling their networks' bandwidth at a loss. Falling bandwidth prices reduce the amount of oxygen reaching an industry already choked by the creditor's noose. In order to meet their debt obligations, many carriers have no choice but to enter a no- holds-barred price war in hopes of generating enough cash to stay alive. Reorganization announcements by telco incumbents signal their intention to get out of the long distance voice business in order to focus on high-growth data services, which will exacerbate the price wars even further. |
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