February 26, 2007

Dark Fiber Q & A with Fibertech

This entry is the first in a series with Mike Hurley, Vice President of Sales and Marketing for Fibertech Networks.

Given the recent consolidation in the telecommunications industry, how do you feel bandwidth prices will be impacted?

I think the recent consolidation, and perhaps more importantly, the growing regulatory climate that allowed Verizon’s forbearance petition to limit network sharing, will have a negative impact on availability and price of local access. We see the trend increasing with Verizon’s request to further limit network assets with their FCC request to exempt DS-1 and DS-3 access from regulation in a number of markets. This demonstrates their aggressive desire to reinstate their local access dominance and monopoly, or perhaps duopoly with the cable company, more directly than at any time since the 1996 Telecom Act was put in place.

The impact of this increase in RBOC market power is fewer options and a stabilization and gradual increase in market prices.

Fibertech is well positioned in tier II and III markets to assist carrier and enterprise customers with their last mile transport needs. We have built 20 markets across the Northeast with metro networks strategically connecting local Telco central offices, carrier hotels, data centers, office parks and other buildings.

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