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Technology Stocks : Spectrian Co. (SPCT)

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To: TOM KARIS who wrote (719)6/25/1999 10:01:00 AM
From: Stephen L  Read Replies (1) of 738
 
The Nortel Bell South Deal should help:

BellSouth picks Nortel

DAVID SCHOBER

BellSouth and Nortel Networks signed a memorandum of understanding for a multibillion-dollar purchase agreement today. The deal is expected to close in July and will incorporate Nortel's entire product portfolio.

This agreement is a way for BellSouth to hone its current way of doing business, which consists of buying from various vendors in smaller numbers. “What BellSouth realized was that the landscape was changing and they needed a new way to do business,” said Bill Conner, an executive vice president at Nortel.

Highlighted in the 10-year deal were data products and wireless products, as well as the deal's global nature. Although it is not an exclusive contract, BellSouth has certainly aligned itself with Nortel, and will likely lean heavily on it for products across all divisions.

By aligning itself so closely with a single vendor, BellSouth will be able to focus its energy on areas other than engineering while continuing to upgrade its network, said Conner. “[The agreement] gives them the ability to expand and update without having to do a lot of engineering.”

For Nortel, this will mean a more directed business path. “Clearly what it sets down is how our business will move forward—it will allow us to focus on their business,” said Conner.
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