Nat, Here is a report on Nexabit from Morgan Stanley..
08:50am EST 3-Nov-99 Morgan Stanley\DW (Shah, Alkesh 212-761-6554) LU GBLX NT
LUCENT TECHNOLOGIES INC.: FIRST CUSTOMER FOR NEXABIT IP TERABIT ROUTER
2000E $0.55 - $0.27 - $0.34 - $0.40 -
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5 Yr. EPS Growth: 20% Mkt Cap./Rev: 5.37x
Dividend:-- Yield:-- Mkt Cap.: $202,805 MM
Shares Outst.: 3,171.8 MM
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CEPS = Calendar year EPS
KEY POINTS:
Global Crossing (GBLX, $33, Not Rated) announced that it has completed the first phase of field trials with Lucent's Nexabit NX64000 terabit router.
We believe that Global Crossing will be Lucent's first carrier customer for the Nexabit product, which is expected to be commercially available at the end of the year. Commercial launch of Global Crossing's service, over its North American Crossing network, is planned for the first half of 2000.
Global Crossing is planning a global fiber optic network covering 92,700 route miles and serving 170 major cities.
Global Crossing is using the Nexabit router to transport Internet Protocol (IP) traffic at speeds of 10 Gb/s (OC-192). Lucent believes that it is the first to market with OC-192 interfaces on a terabit router, ahead of competitors Nortel (NT, $61, Outperform, target $65), Tellabs (TLAB, $62, Outperform, target $80) (Netcore), Juniper (JNPR, $265, Not Rated), Cisco (CSCO, $74, Strong Buy, target $75, covered by Chris DePuy), and Avici. We believe that Lucent's expertise in optical transport should contribute to product development and integration of optical and terabit routing technologies.
I think they are making a progress. Best thing would be if they can combine optical and terbit routing together and deliver.
LU is also ahead of the competition in 3G Wireless development.
BR
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