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Cincinnati Bell Inc. Message Board

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  • rrb1981 rrb1981 Mar 19, 2002 10:54 PM Flag

    Telcos and The Airline Marketing Model

    I think everyone knows I'm a bear on Qwest and Broadwing but I've always had a soft spot for them as well. Despite the blundering management of Nacchio at Qwest and Ellenberger at Broadwing, both had the forsight to realize that the broadband portions would need a stabel cash cow ILEC to survive. As it is, the networks can be leveraged to improve the local network calls and of course for data transmission acrosss the country. That being said, I still have doubt as to how they will make it with so much debt and so little cash. I would like to think that an RBOC would take out Broadwing but what about regulations and Sherman Anti-Trust junk? Verizon would be ruled out but Bell South could probably squeak by. BUT will they make a move or will they wait till Broadwing becomes cash flow positive and things pick up a bit. Who knows, maybe Qwest and Broadwing will merge and form a super network and have two ILEC's(Cincinatti Bell and US West). Not very likely but they might be able to squeeze out some synergies from a combination. A much more likely scenario is Alltel buying CBT. The younger Ford is apparently very aggressive, going after Centurytel and now settling for Centurytel wireless operations and of course buying lots of access lines earlier from Verizon.

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