RE: Covad, Chapter 11 !

[Roeland Meyer <rmeyer () mhsc com>]

> From: Steven J. Sobol [mailto:sjsobol () NorthShoreTechnologies net]
> Sent: Wednesday, August 08, 2001 12:44 PM
>
> On Wed, 8 Aug 2001, Mitch Halmu wrote:
>
> > Ownership of the C/O and the last mile confers ILECs an 
> unfair advantage
> > in this business
>
> I'd agree with that, but I think there's more to it than that. Cash
> management and order turnaround time play a big role in the 
> success of a DLEC, too.

Cash management wasn't just a problem with the DLECs. Most of the dot-com
world had  that problem. If WebVan had reduced itself to making at least ONE
region profitable (proving the market) and then resrticted themselves to
half of their growth rate, they'd still be around. Most of them bit off more
than they could chew, were to stupid to realise it, and choked to death when
they couldn't feed the burn-rate.