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Link: Here Comes Trouble: Saving Big Iron in Telecom – GigaOM

Here Comes Trouble: Saving Big Iron in Telecom – GigaOM

Contrasts Telco today with shared computing of the 70’s. Carriers are facing tough sledding when it comes to avoiding a dumb pipe destiny, and the kinds of equipment sold into the network will start to change as well.

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  1. Quick note.

    In general, margins are higher when there is less competition. With only two competitors, they are far more likely to cooperate than to fight hard.

    There are 4+ competitors in U.S. wireless. Dozens in TV programming. Many in CDN, data centers, tech support, ad serving and any other natural move for telcos.

    Given there are only two pipes to most American homes for the next decade, I would think that being a pipe sounds pretty good. Much more likely to hit good margins.

    Is that dumb?

    db

    Posted by Dave Burstein | February 23, 2008, 10:05 PM