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Creative destruction in the Communication space

March 23, 2009

Analysis of:Ma Bell’s Breakup: 25 Years Later, Everything Old Is New Again | www.xchangemag.com

1) As communications have grown exponentially, the telcos have remained "utilities" with almost no overall growth, and demonstrating alarming losses in their land line subscription businesses. 2) The growth of video (from 20% to a projected 80%) as an Internet medium has left the Telco's in the dust due to their infrastructure. 3) In less than 25 years, a "shadow" (i.e., alternative) network has evolved, replacing the "centralized" network of 1984. 4) Today's network switching capacity is forcing a "train wreck" waiting to happen.

Look to the Core!

March 23, 2009

Analysis of:If Everyone Had Verizon FiOS for Broadband, Capping Would Not Be an Issue | seekingalpha.com

1) FIOS, even if it were economically viable, would not "solve" the capping issue 2) The switching capacity/density of the Verizon core network will not support today's usage without FIOS. FIOS exacerbates the problem, rather than "solving' it 3) The move to video (from 20% to a forecasted 80%) for wireline, wireless, and CATV will heighten the problem, until new high capacity/density switching is placed in the core network.

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