NNSquad - Network Neutrality Squad
[ NNSquad ] Financial meltdown vs. broadband competition in the U.S.
------- Forwarded Message
From: David Farber <dave@farber.net>
To: "ip" <ip@v2.listbox.com>
Subject: [IP] Lehman's demise etc.
Date: Thu, 18 Sep 2008 17:09:34 -0400
Begin forwarded message:
From: Dave Burstein <daveb@dslprime.com>
Date: September 18, 2008 4:14:21 PM EDT
To: dave@farber.net
Subject: Lehman's demise etc.
> Dave (for the list if interesting enough.)
Companies often come out of Chapter 11, but I just got the=20=20
release below that Lehman's liquidation will proceed starting Friday.=20=20
Some of the other problems are on the front page, and the word around=20=20
the street is much more to come. The bankers' problem will affect us=20=20
in technology, making it much harder to fund startups, IPO, or grow.=20=20=
=20
That has a direct policy effect: starting a third truly high speed=20=20
competitor in the U.S. has gone from highly unlikely to almost=20=20
impossible.
That means that U.S. and Canadian policy has to work well with 2=20=
=20
1/2 competitors, because that''s all we are going to have. Nearly=20=20
everything we've done since 1996 has been designed to encourage=20=20
competition and assumes there will be strong competition. Two carriers=20=
=20
are weak competition, and that's U.S. reality for many years forward.=20=20=
=20
Cable and the Bells have become quite good at "winking and nodding"=20=20
and holding back what competition is doing in some countries. I wish=20=20
wireless could deliver to tens of millions speeds fast enough to watch=20=
=20
TV on our regular sets, which I think is what most people will want.
Nothing I know planned in wireless can deliver 5 meg streams=20=20
to a large volume of homes without far more towers than are planned.=20=20
Wireless is extraordinary, should be universal, and is changing the=20=20
world - especially Asia and Africa. But wireless bandwidth is=20=20
essentially shared. The 13 and 130 megabit hopes are if only one user=20=20
is on the cell site. You can't deliver 5 megabit stream to a quarter=20=20
of your users, much less for two or three TVs, without far more towers=20=
=20
than any plan I know of. I'm not the expert and I hope that changes,=20=20
but for my thinking ahead I believe most people will want to watch TV=20=20
and therefore will still want cable, fiber, or DSL.
Comcast will be able to offer 50 megabits to 20 or 30 million=20=20
people by 2010, their CFO just confirmed on Wall Street. (Yes, DOCSIS=20=20
3.0 will be that good if you haven't noticed yet.) Verizon FIOS GPON,=20=20
now going in for about 12M homes, can easily handle 200 megabits in=20=20
both directions. In Japan and France, 100 megabits costs $20-$40 and=20=20
the companies are profitable, and I think that's what most of us want=20=20
for our country. So far, it looks like high speeds will be far above=20=20
the competitive price and not available for a decade for many, because=20=
=20
we have weak competition. I hope I prove wrong, and I hope the new FCC=20=
=20
commissioner is effective enough we will all have affordable, truly=20=20
high speed service. Chiago and San Francisco should have an Internet=20=20
comparable to Paris and Tokyo.
db
> SIPC ISSUES STATEMENT ON LEHMAN BROTHERS INC.: LIQUIDATION=20=20
> PROCEEDING NOW ANTICIPATED
>
> WASHINGTON, D.C. - September 18, 2008 - The Securities Investor=20=20
> Protection Corporation (SIPC), which maintains a special reserve=20=20
> fund authorized by Congress to help investors at failed brokerage=20=20
> firms, issued the following statement today in relation to the SIPC=20=20
> member, Lehman Brothers Inc. (LBI).
>
> SIPC President Stephen Harbeck said: =93On Friday, September 19, 2008,=20=
=20
> SIPC will file a proceeding placing LBI in liquidation under the=20=20
> Securities Investor Protection Act (SIPA). After extensive=20=20
> discussions and consultation with representatives of the firm and=20=20
> its parent company, as well as representatives of the Securities and=20=
=20
> Exchange Commission, the Federal Reserve, the Commodity Futures=20=20
> Trading Commission, the Financial Industry Regulatory Authority and=20=20
> others, SIPC has decided that such action is appropriate for the=20=20
> protection of customers and to facilitate the transfer of customer=20=20
> accounts of LBI and an orderly unwinding of the business of the=20=20
> brokerage firm.
>
> This action is being taken in connection with a proposed sale of the=20=
=20
> business of the broker-dealer to Barclays Capital Inc. A hearing on=20=20
> approval of that sale is scheduled for September 19, 2008, at 4p.m.,=20=
=20
> in the Chapter 11 proceeding of the parent company, LBHI.
>
> To provide clarity to market participants, I would note the following:
>
> * SIPC=92s initiation of the proceeding is designed to minimize market=20=
=20
> disruption and to allow the transfer of assets and customer accounts=20=
=20
> of LBI to close in a timely manner under the negotiated Asset=20=20
> Purchase Agreement.
>
> * SIPC will ask the court where the SIPA proceeding is filed to=20=20
> allow the Trustee to operate the business of the firm for a limited=20=20
> time so that normal operations can continue.
>
> * SIPC continues to consult and coordinate with the above-mentioned=20=20
> federal agencies and others to ensure orderly market functioning.
>
> SIPC remains vigilant and committed to our core mission of customer=20=20
> protection.=94
>
> ABOUT SIPC
>
> The Securities Investor Protection Corporation is the U.S.=20=20
> investor's first line of defense in the event a brokerage firm=20=20
> fails, owing customer cash and securities that are missing from=20=20
> customer accounts. SIPC either acts as trustee or works with an=20=20
> independent court-appointed trustee in a brokerage insolvency case=20=20
> to recover funds. The statute that created SIPC provides that=20=20
> customers of a failed brokerage firm receive all non-negotiable=20=20
> securities - such as stocks or bonds -- that are already registered=20=20
> in their names or in the process of being registered. At the same=20=20
> time, funds from the SIPC reserve are available to satisfy the=20=20
> remaining claims of each customer up to a maximum of $500,000. This=20=20
> figure includes a maximum of $100,000 on claims for cash. From the=20=20
> time Congress created it in 1970 through December 2006, SIPC has=20=20
> advanced $505 million in order to make possible the recovery of=20=20
> $15.7 billion in assets for an estimated 626,000 investors.
>
> For more information about SIPC, see "The Investor's Guide to=20=20
> Brokerage Firm Liquidations" at http://www.sipc.org/pdf/SIPC_brochure_Inv=
estors_Guide_To_BD_Liquidations.pdf=20
> .
>
> MEDIA CONTACT: Leslie Anderson, (703) 276-3256 or landerson@hastingsgrou=
p.com=20
> . All investor inquiries of SIPC should be directed to asksipc@sipc.org=
=20
> or (202) 371-8300. Inquiries about LBHI should be directed to=20=20
> Monique Wise, 646-333-9056.
>
>
>
> This email was sent to daveb@dslprime.com
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<html><body style=3D"word-wrap: break-word; -webkit-nbsp-mode: space; -webk=
it-line-break: after-white-space; "><br><div><br><div>Begin forwarded messa=
ge:</div><br class=3D"Apple-interchange-newline"><div><div style=3D"margin-=
top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font =
face=3D"Helvetica" size=3D"3" color=3D"#000000" style=3D"font: 12.0px Helve=
tica; color: #000000"><b>From: </b></font><font face=3D"Helvetica" size=3D"=
3" style=3D"font: 12.0px Helvetica">Dave Burstein <<a href=3D"mailto:dav=
eb@dslprime.com">daveb@dslprime.com</a>></font></div><div style=3D"margin-t=
op: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font f=
ace=3D"Helvetica" size=3D"3" color=3D"#000000" style=3D"font: 12.0px Helvet=
ica; color: #000000"><b>Date: </b></font><font face=3D"Helvetica" size=3D"3=
" style=3D"font: 12.0px Helvetica">September 18, 2008 4:14:21 PM EDT</font>=
</div><div style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: 0px;=
margin-left: 0px; "><font face=3D"Helvetica" size=3D"3" color=3D"#000000" =
style=3D"font: 12.0px Helvetica; color: #000000"><b>To: </b></font><font fa=
ce=3D"Helvetica" size=3D"3" style=3D"font: 12.0px Helvetica"><a href=3D"mai=
lto:dave@farber.net">dave@farber.net</a></font></div><div style=3D"margin-t=
op: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px; "><font f=
ace=3D"Helvetica" size=3D"3" color=3D"#000000" style=3D"font: 12.0px Helvet=
ica; color: #000000"><b>Subject: </b></font><font face=3D"Helvetica" size=
=3D"3" style=3D"font: 12.0px Helvetica"><b>Lehman's demise etc.</b></font><=
/div><div style=3D"margin-top: 0px; margin-right: 0px; margin-bottom: 0px; =
margin-left: 0px; min-height: 14px; "><br></div> </div><div> <blockquote ty=
pe=3D"cite" class=3D"cite" cite=3D"">Dave (for the list if interesting enou=
gh.)</blockquote><br> Companies often come out of =
Chapter 11, but I just got the release below that Lehman's liquidation will=
proceed starting Friday. Some of the other problems are on the front page,=
and the word around the street is much more to come. The bankers' problem =
will affect us in technology, making it much harder to fund startups, IPO, =
or grow. That has a direct policy effect: starting a third truly <u>h=
igh speed</u> competitor in the U.S. has gone from highly unlikely to almos=
t impossible. <br><br> That means that U.S. and Ca=
nadian policy has to work well with 2 1/2 competitors, because that''s all =
we are going to have. Nearly everything we've done since 1996 has been desi=
gned to encourage competition and assumes there will be strong competition.=
Two carriers are weak competition, and that's U.S. reality for many years =
forward. Cable and the Bells have become quite good at "winking and n=
odding" and holding back what competition is doing in some countries. I wis=
h wireless could deliver to tens of millions speeds fast enough to watch TV=
on our regular sets, which I think is what most people will want. <br><br>=
Nothing I know planned in wireless ca=
n deliver 5 meg streams to a large volume of homes without far more towers =
than are planned. Wireless is extraordinary, should be universal, and is ch=
anging the world - especially Asia and Africa. But wireless bandwidth is es=
sentially shared. The 13 and 130 megabit hopes are if only one user is on t=
he cell site. You can't deliver 5 megabit stream to a quarter of your users=
, much less for two or three TVs, without far more towers than any plan I k=
now of. I'm not the expert and I hope that changes, but for my thinking ahe=
ad I believe most people will want to watch TV and therefore will still wan=
t cable, fiber, or DSL. <br><br> Comcast wil=
l be able to offer 50 megabits to 20 or 30 million people by 2010, their CF=
O just confirmed on Wall Street. (Yes, DOCSIS 3.0 will be that good if you =
haven't noticed yet.) Verizon FIOS GPON, now going in for about 12M homes, =
can easily handle 200 megabits in both directions. In Japan and France, 100=
megabits costs $20-$40 and the companies are profitable, and I think that'=
s what most of us want for our country. So far, it looks like high speeds w=
ill be far above the competitive price and not available for a decade for m=
any, because we have weak competition. I hope I prove wrong, and I hope the=
new FCC commissioner is effective enough we will all have affordable, trul=
y high speed service. Chiago and San Francisco should have an Internet comp=
arable to Paris and Tokyo.<br> db<br><br> &nb=
sp; <br><br> <blockquote type=3D"cite" class=3D"cite" cit=
e=3D"">SIPC ISSUES STATEMENT ON LEHMAN BROTHERS INC.: LIQUIDATION PROCEEDIN=
G NOW ANTICIPATED<br><br> WASHINGTON, D.C. - September 18, 2008 - The Secur=
ities Investor Protection Corporation (SIPC), which maintains a special res=
erve fund authorized by Congress to help investors at failed brokerage firm=
s, issued the following statement today in relation to the SIPC member, Leh=
man Brothers Inc. (LBI). <br><br> SIPC President Stephen Harbeck said: =93O=
n Friday, September 19, 2008, SIPC will file a proceeding placing LBI in li=
quidation under the Securities Investor Protection Act (SIPA). After =
extensive discussions and consultation with representatives of the firm and=
its parent company, as well as representatives of the Securities and Excha=
nge Commission, the Federal Reserve, the Commodity Futures Trading Commissi=
on, the Financial Industry Regulatory Authority and others, SIPC has decide=
d that such action is appropriate for the protection of customers and to fa=
cilitate the transfer of customer accounts of LBI and an orderly unwinding =
of the business of the brokerage firm. <br> <br> This action is being=
taken in connection with a proposed sale of the business of the broker-dea=
ler to Barclays Capital Inc. A hearing on approval of that sale is schedule=
d for September 19, 2008, at 4p.m., in the Chapter 11 proceeding of the par=
ent company, LBHI.<br><br> To provide clarity to market participants, I wou=
ld note the following:<br><br> * SIPC=92s initiation of the proceeding is d=
esigned to minimize market disruption and to allow the transfer of assets a=
nd customer accounts of LBI to close in a timely manner under the negotiate=
d Asset Purchase Agreement. <br><br> * SIPC will ask the court where =
the SIPA proceeding is filed to allow the Trustee to operate the business o=
f the firm for a limited time so that normal operations can continue. <br><=
br> * SIPC continues to consult and coordinate with the above-mentioned fed=
eral agencies and others to ensure orderly market functioning. <br><br> SIP=
C remains vigilant and committed to our core mission of customer protection=
.=94<br><br> ABOUT SIPC<br><br> The Securities Investor Protection Corporat=
ion is the U.S. investor's first line of defense in the event a brokerage f=
irm fails, owing customer cash and securities that are missing from custome=
r accounts. SIPC either acts as trustee or works with an independent court-=
appointed trustee in a brokerage insolvency case to recover funds. The stat=
ute that created SIPC provides that customers of a failed brokerage firm re=
ceive all non-negotiable securities - such as stocks or bonds -- that are a=
lready registered in their names or in the process of being registered. At =
the same time, funds from the SIPC reserve are available to satisfy the rem=
aining claims of each customer up to a maximum of $500,000. This figure inc=
ludes a maximum of $100,000 on claims for cash. From the time Congres=
s created it in 1970 through December 2006, SIPC has advanced $505 million =
in order to make possible the recovery of $15.7 billion in assets for an es=
timated 626,000 investors. <br><br> For more information about SIPC, see "T=
he Investor's Guide to Brokerage Firm Liquidations" at <a href=3D"http://ww=
w.sipc.org/pdf/SIPC_brochure_Investors_Guide_To_BD_Liquidations.pdf" eudora=
=3D"autourl"> http://www.sipc.org/pdf/SIPC_brochure_Investors_Guide_To_BD_L=
iquidations.pdf</a> . <br><br> MEDIA CONTACT: Leslie Anderson, (703) =
276-3256 or <a href=3D"mailto:landerson@hastingsgroup.com";>landerson@hastin=
gsgroup.com</a>. All investor inquiries of SIPC should be directed to=
<a href=3D"mailto:asksipc@sipc.org";>asksipc@sipc.org</a> or (202) 371-8300=
. Inquiries about LBHI should be directed to Monique Wise, 646-333-9056. <b=
r><br> <br><br> This email was sent to <a href=3D"mailto:daveb@dslprime.com=
">daveb@dslprime.com</a></blockquote></div> </div><br><div style=3D"padding=
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