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[ NNSquad ] Is telecom infrastructure peaking?


----- Forwarded message from Dave Farber <dave@farber.net> -----

Date: Wed, 20 Jan 2010 11:42:50 -0500
From: Dave Farber <dave@farber.net>
Subject: [IP] Is telecom infrastructure peaking?
Reply-To: dave@farber.net
To: ip <ip@v2.listbox.com>





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>



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----- End forwarded message -----