Analyst's comments on LU/LVLT deal:
LU: Wins First Soft Switch Order for $250 MM from Level 3
Salomon Smith Barney
Wednesday, June 23, 1999
SUMMARY:
* LU announced a min 4 yr, $250 MM agrmt w/ LVLT to buy LU's
"softswitches," incorporating best of both the circuit & IP/packet worlds.
* LU was selected over peers due to time to mkt reasons & product's
reliability & scaleability. Also, switch is currently avail for commercial testing & LVLT expects commercial deployment of svces in 2H99.
* Importantly, new softswitch meets reliability reqs of today's voice ntwks as well as needs of data networks in the future. Also, switch includes all trad'l voice svces such as 1+ dialing, local number portability, 411, 911, etc. which generate significant revs for carriers.
* While the contract is a positive, no change to ests. at this time.
However, it does provide us w/ greater comfort w/ LU's short & long term growth targets & its role in old & new networks. |
