Bandwidth Bullets

3 February 2005

Most estimates indicate that IP traffic continues to grow at rates exceeding 50% per year. Yet, we have the following situations unfolding as we speak:

  • Carl Icahn owns around 65% of XO Communications with no clear game plan announced. The company currently operates as a traditional CLEC.
  • SBC is buying AT&T for around $16 billion.
  • Qwest is negotiating to buy MCI for around $6.3 billion, but has $17.2 billion of debt already.
  • RCNC went bankrupt.
  • David McCourt has resigned from boards at Level 3 and CTE.
  • Level 3 trades at $2.97 from a high of $130 with over 100% share dilution.
  • Vonage and Skype continue to make inroads at the consumer level.
  • Cisco continues to preach VoIP.
  • 1.5Mbps costs an American consumer about $45 per month.
  • Leucadia/WilTel are private and quiet at the moment.
  • MCI holds the tattered remains of what was once at $180 billion combination of Worldcom and MCI.
  • Sprint is paying $35 billion for Nextel.

Can anyone see an endgame in all of this?

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