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Technology Stocks : Newbridge Networks

NN 14.21

+1.7%

Nov 28 9:30 AM EST

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To: Doug who wrote (15087)	11/25/1999 10:30:00 AM
From: fumble	Read Replies (1) of 18016

channel selection depending on the QoS demanded by the client. How will this scenario affect the demand for the next generation ATM switches.? Many bandwidth suppliers are still split into Data (IP) and time sensitive (TDM, ATM, etc.) networks. These folks realize that putting together these two customer requirements will save money internally. The interesting wrinkle is the effect of offering QoS to the consumer. It should spark the development of applications which will consume gobs of bandwidth (video conference calls to grandma, etc.) Unfortunately, without QoS, these applications face rejection by the consumers, so it is a chicken and egg situation. Without QoS, no good applications. Without applications, bandwidth suppliers say "No-one is requesting QoS".. There is also the issue of cannibalization of existing revenue sources. Looking at this issue, I think it will be the new entry carriers that will put pricing pressure on the existing global carriers (according to my phone bill, this is already happening).

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