See No Evil
The relationship among Wall Street, the investment community and technology is dysfunctional at best.The relationship among Wall Street, the investment community and technology is dysfunctional at best. For two years at least, investors courted network service providers that showed a flash of innovation and vision, and money flowed before the ink was dry on the business plans. In many cases, those investors pushed network builders to be more aggressive. And so there were companies including the Big Three Digital Subscriber Line (DSL) wholesalers Covad Communications, NorthPoint Communications and Rhythms NetConnections that shifted from building in targeted markets to having a national footprint within two years. Jato Communications, too, had a specific strategy serving second- and third-tier markets, mostly in the West but it was swept up by investor enthusiasm and tossed on the rocks when the capital disappeared.
Its easy to look back and declare that profits, and not just growth, should always have been the investors goal. But it isnt that simple. Even as I write this, Wall Street is actively courting other new technologies and the service providers that will offer them. Over the course of the next two years, the interest in optical networking and broadband wireless is likely to crest, however.