Clay, I think it depends on the provider. Some certainly do go out of their way to "spread the wealth" so to speak. But the carriers, IMO, and looking more and more toward "single point of contact" for the reasons I previously stated.
One area where this is not true, however, is for the true cutting edge equipment, like terabit routing, and optical switching. Here, the carriers are willing to push the envelope with startup equipment. This is what is drving the frenzy in stock prices of companies like Cerent, SCMR, JNPR etc.
One interesting angle that no one seems to have explored is the possibility of a SCMR or JNPR looking at NN. As unbelievable as this sounds, it could actually happen. These true single product companies could gain access to a vast customer list with just a little stock dilution. These optical and IP switching companies, if they truly want to challenge CSCO, will need diverse product portfolios. A NN purchase, although likely devastating to their share price short term, could give them needed ammo to truly challenge CSCO and LU. I think at some point we will see JNPR do a single day "sweep" where in one day, they purchase two or three companies, in the $1-5B range. I think CIEN and NN (if this 450G thing is real) could be at the top of that list.
Maybe I'm just dreaming, but since I have no stake in any of these stocks, I can be a little less objective than I have in the past.
Good luck.
Gary |
