That Damn Competition
Quote of the year:
"It's a miserable market but it's miserable because of the massive competition that's wrecking everything,"
From this article on how all the competition in the wirelss sector is preventing anyone from making any money. Market share and growth over profits. Folks have been more concerned with getting big fast, because they have these huge, very expensive networks of equipment that only make sense if they have large and fast growing customer bases against which to amortize those investments. As soon as the customer base growth slows -- as soon as pricing power disappears, the ability to make money completly evaporates and you're just trying to play musical chairs -- stay in the game until the weaker players fall out. It's a harrowing thrill ride to the death -- of hopefully everyone but you -- if you're int he business, and a tough one to be along for the ride on if you're an investor.
One thing to know is that there will be an other side to this rollercoaster. Weaker players will fold (Voicestream and ATTWS are said to be in talks to merge), consolidation will happen. And people won't give up their cell phones. The busienss won't go away. Days of strong growth are likely behind us forever, though.
11:09:59 AM 
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