Path: utzoo!attcan!uunet!bu.edu!telecom-request! From: 0004133373@mcimail.com (Donald E. Kimberlin) Newsgroups: comp.dcom.telecom Subject: Expensive Telephone Plant??? Message-ID: <61549@bu.edu.bu.edu> Date: 28 Jul 90 15:42:00 GMT Sender: news@bu.edu.bu.edu Organization: Telecommunications Network Architects, Safety Harbor, FL Lines: 143 Approved: Telecom@eecs.nwu.edu X-Submissions-To: telecom@eecs.nwu.edu X-Administrivia-To: telecom-request@eecs.nwu.edu X-Telecom-Digest: Volume 10, Issue 524, Message 1 of 6 It seems many readers continue to support the archaic notion that the costs of capital investment drive the telephone business ... a principle that was established in 1913. It's a principle that still prevails for utility companies that have had little real technology change. It takes heavy pipe and large tanks to deliver water or gas; it takes heavy copper wire and massive generators (even with nuclear power) to deliver increasing amounts of electricity. But, the semiconductor revolution coupled with the age of computers has so changed the nature of "the phone business" that capital needs are now trivial compared to even a decade ago. The "phone industry's" nature has changed, but it continues to parade behind the mask of its 1913 face, aided and abetted by state regulators and a public that simultaneously is enjoying its romance with the phone