Williams Invites Telecom Carriers To Talk Bandwidth
Friday, April 7, 2000 04:36 PM	

		
		
	?Mail this article to a friend 	
	
	By Michael Rieke 
	HOUSTON (Dow Jones)--Following up on its February pledge to be a leader in 
developing a liquid market for telecommunications bandwidth, Williams 
Communications Group (WCG, news, msgs) will host a meeting of telecom 
carriers next week. 
	Ken Epps, senior vice president for strategic marketing for Williams 
Communications, told Dow Jones Newswires that the first objective for the 
meeting will be understanding any concerns carriers might have about a market 
for standardized trading of bandwidth. 
	That's a sensible approach for Williams Communications because the company 
wasn't impressed last May when Enron Corp. (ENE, news, msgs) suggested 
trading bandwidth as a commodity under standard terms and conditions. 
	Bandwidth is the capacity to move data on telecommunications networks. 
	Many observers thought that such a market would be ideal for Williams 
Communications. After all, 85% of its stock is owned by Williams Co. (WMB, 
news, msgs), which has been trading energy commodities like crude oil and 
natural gas for years. 
	But Williams Communications didn't get behind the idea until February when it 
told industry analysts it had formed a bandwidth trading group. The new group 
includes Sharon Crow, who had been a gas trader and risk manager with 
Williams Energy Services, a unit of Williams Co. She is now vice president of 
bandwidth trading for Williams Communications. 
	Since then, a number of other companies have said they want to play in that 
market - Dynegy Inc. (DYN, news, msgs); El Paso Energy Corp. (EPG, news, msgs
); Columbia Transmission Communications, a unit of Columbia Energy Group (CG, 
news, msgs); and Koch Industries. 
	Those companies all have one thing in common and it isn't ownership of 
telecommunications bandwidth. They all have years of experience trading 
energy commodities. 
	Last month companies from the energy side joined some carriers and others 
interested in standardized trading of bandwidth at a meeting put together by 
CompTel, a telecom industry trade association. 
	At that meeting they decided who would be considered principals in the 
bandwidth trading market - companies that will "take title to," or own, 
bandwidth. In other words, principals will be either telecom carriers or 
companies that will buy and sell bandwidth to manage risk in the 
telecommunications industry. 
	They also formed a committee of principals to study standard terms and 
conditions needed to establish a liquid market for bandwidth trading. 
	People who attended the meeting said two of the largest carriers were missing 
at the CompTel meeting. MCI WorldCom (WCOM, news, msgs) was there but AT&T (T
, news, msgs) and Sprint (FON, news, msgs) weren't. 
	The meeting next week, which starts Monday, is for telecom carriers only, 
Epps said. This week, he wouldn't mention names of the companies invited, but 
last month he told Dow Jones Newswires his company's meeting would include 
"the real players, the MCI WorldComms, the Qwests (Q, news, msgs), the 
AT&Ts.... It's about people who have the assets and how we use these to 
advantage the marketplace, how we build a good powerful market model," Epps 
said. 
	
	
Williams Invites Telecom Carriers To Talk Bandwidth
Friday, April 7, 2000 04:36 PM	

		
		
		?Mail this article to a friend 
		
		By Michael Rieke 
		HOUSTON (Dow Jones)--Following up on its February pledge to be a leader in 
developing a liquid market for telecommunications bandwidth, Williams 
Communications Group (WCG, news, msgs) will host a meeting of telecom 
carriers next week. 
		Ken Epps, senior vice president for strategic marketing for Williams 
Communications, told Dow Jones Newswires that the first objective for the 
meeting will be understanding any concerns carriers might have about a market 
for standardized trading of bandwidth. 
		That's a sensible approach for Williams Communications because the company 
wasn't impressed last May when Enron Corp. (ENE, news, msgs) suggested 
trading bandwidth as a commodity under standard terms and conditions. 
		Bandwidth is the capacity to move data on telecommunications networks. 
		Many observers thought that such a market would be ideal for Williams 
Communications. After all, 85% of its stock is owned by Williams Co. (WMB, 
news, msgs), which has been trading energy commodities like crude oil and 
natural gas for years. 
		But Williams Communications didn't get behind the idea until February when it 
told industry analysts it had formed a bandwidth trading group. The new group 
includes Sharon Crow, who had been a gas trader and risk manager with 
Williams Energy Services, a unit of Williams Co. She is now vice president of 
bandwidth trading for Williams Communications. 
		Since then, a number of other companies have said they want to play in that 
market - Dynegy Inc. (DYN, news, msgs); El Paso Energy Corp. (EPG, news, msgs
); Columbia Transmission Communications, a unit of Columbia Energy Group (CG, 
news, msgs); and Koch Industries. 
		Those companies all have one thing in common and it isn't ownership of 
telecommunications bandwidth. They all have years of experience trading 
energy commodities. 
		Last month companies from the energy side joined some carriers and others 
interested in standardized trading of bandwidth at a meeting put together by 
CompTel, a telecom industry trade association. 
		At that meeting they decided who would be considered principals in the 
bandwidth trading market - companies that will "take title to," or own, 
bandwidth. In other words, principals will be either telecom carriers or 
companies that will buy and sell bandwidth to manage risk in the 
telecommunications industry. 
		They also formed a committee of principals to study standard terms and 
conditions needed to establish a liquid market for bandwidth trading. 
		People who attended the meeting said two of the largest carriers were missing 
at the CompTel meeting. MCI WorldCom (WCOM, news, msgs) was there but AT&T (T
, news, msgs) and Sprint (FON, news, msgs) weren't. 
		The meeting next week, which starts Monday, is for telecom carriers only, 
Epps said. This week, he wouldn't mention names of the companies invited, but 
last month he told Dow Jones Newswires his company's meeting would include 
"the real players, the MCI WorldComms, the Qwests (Q, news, msgs), the 
AT&Ts.... It's about people who have the assets and how we use these to 
advantage the marketplace, how we build a good powerful market model," Epps 
said.