Comments on: Link: Here Comes Trouble: Saving Big Iron in Telecom – GigaOM http://www.nyquistcapital.com/2008/02/19/link-here-comes-trouble-saving-big-iron-in-telecom-gigaom/ More Signal. Less Noise. Thu, 02 Apr 2009 12:29:57 -0700 http://wordpress.org/?v=2.9.1 hourly 1 By: Dave Burstein http://www.nyquistcapital.com/2008/02/19/link-here-comes-trouble-saving-big-iron-in-telecom-gigaom/#comment-1673 Dave Burstein Sun, 24 Feb 2008 03:05:43 +0000 http://www.nyquistcapital.com/2008/02/19/link-here-comes-trouble-saving-big-iron-in-telecom-gigaom/#comment-1673 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 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

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