From: Harvey Newstrom (mail@HarveyNewstrom.com)
Date: Wed Aug 21 2002 - 09:34:02 MDT
> For Telecom Workers, Burst Of Bubble Takes Heavy Toll
> By REBECCA BLUMENSTEIN
> Wall Street Journal
> But after a
> frenzy of spending and hiring, it suddenly became clear in mid-2001 that
> the Internet wasn't growing nearly as fast as the 1,000-fold annual
> increases originally predicted. The huge run-up has now been replaced
> by a
> merciless ride down.
> So much money was spent buying telecom gear during the frenzy that there
> is now seven years' worth of excess inventory, says Lonnie Martin, chief
> executive of White Rock Networks, a Richardson start-up that is trying
> to
> hang on. He values the excess supply at some $160 billion. "That is an
> awful lot of exuberance to get rid of," he says.
This echoes what I expressed on the Extropians List. Everybody seemed
to reject it then, but now it seems to be common knowledge. Industry
experts are recalculating the growth of the Internet and are revising
figures. The Internet never did expand at the exponential rates that
were falsely claimed by large telecomm companies. People created
companies, created jobs, and laid fiber for a demand that was never
there. Imagine seven years of future growth falsely claimed over the
last decade. That's a very large percentage of the total claimed growth.
-- Harvey Newstrom, CISSP <www.HarveyNewstrom.com> Principal Security Consultant <www.Newstaff.com>
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