In Spite of Record Growth, Reduced Expectations For Broadband

Boardwatch has an article about the seriously reduced expectations within the broadband world:

"Except for a few bright spots like metro Ethernet, the results are a classic glut: Backbone networks are overbuilt; broadband equipment vendors are working off excess inventory; and previously well-funded broadband providers are buckling under the twin maladies of high burn rates and poor access to customers.

This mass extinction of companies is clearing the way for more entrenched, often monopolistic players. But out of the overabundance comes tremendous opportunity. This year will be the year for retooling and a “back-to-basics” mentality toward tech. Proven, revenue-generating services are in, while “gee-whiz” future tech is out. There are no broadband “killer apps” in this market, but there are solid broadband building blocks that can help a service provider make or maintain revenue."



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