Recent earnings disappointments from Covad Communications and Copper Mountain Networks and the consequent market setbacks experienced by these firms and related digital subscriber line (DSL) companies demonstrate that the communications sector is being affected by some of the same market dynamics that are influencing dot-com firms. Like dot-com firms, DSL companies have until recently been riding high on "new economy" market fervor. However, instead of the general e-business futures that dot-coms were relying on, DSL companies are riding the promise of high-speed connectivity to small sites and homes. To fund the necessary infrastructure build outs, many DSL companies and their competitive local exchange carrier (CLEC) brethren have raised large amounts of capital through junk bonds and other corporate debt instruments--while losing money trying to build market share. Now, like the dot-coms, they are facing hard times as the market loses patience with companies that show no sign of making money.