Lucent CEO Says Expect Free Internet
Stock Trades
By Tony Heffernan, Reuters, 09/14/99
ATLANTA (Reuters) - The chief executive of Lucent
Technologies Inc. predicted Tuesday that free stock trades on
the Internet will be announced within a year.
''There is no doubt in my mind that within the next 12 months
someone of substantial repute will announce they're going to
provide trades free online, with the value of you coming to their
(Web) site for other services,'' Rich McGinn, chief executive of
the New Jersey-based telecommunications equipment
supplier, said.
McGinn, who spoke at NetWorld+Interop 99, a trade show for
companies that provide products designed to enhance
telecommunications networks, said that raises questions
about what happens in the future to traditional stock traders
and brokers.
McGinn did not identify who would be offering the free trades
and he did not show for a press conference scheduled for
immediately after his address.
In his speech McGinn said that the rapid upgrading of
telecommunications equipment at some point will affect many
retailers. He said that consumers will be able to shop for goods
on the Internet and download them into their homes.
''The communications revolution is causing a shift in the value
(of goods and services) that requires a creative response from
you,'' he added.
McGinn said that in the past 12 months electronic commerce
has generated $40 billion in sales, and he noted that ''some
forecasts predict that revenues can rise to $1.3 trillion over the
next five years.''
He added that online advertising has reached $3 billion
annually and is ''expected to grow over the next five years to
$22 billion.''
McGinn said that the convergence toward transmission of
voice, data and video on a single system continues.
''We're headed toward the convergence of every network,''
McGinn said. This will lead to ''a network of networks and that
is something that is moving at increasing speed.''
Before that happens, however, he conceded that
communications equipment must provide higher reliability,
better quality of service and the ability of customers to be able
to connect to the network almost immediately.
''The major business challenge facing network providers and
suppliers is to build networks that provide levels of quality and
reliability that meet or exceed those of the voice networks of
today,'' McGinn said.
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