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Technology Stocks : Nortel Networks (NT)
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To: Kenneth E. Phillipps who wrote (4279)1/19/2000 12:11:00 PM
From: The Phoenix  Read Replies (1) of 14638
 
Kenneth,

VPN is one type of service - true. But this I think is another case of someone entering the middle of a discussion. The disagreement between telecomguy and myself revolved around carriers and their revenue streams. His contention is that the infrastructure is costly to deploy and maintain and the only way to pay for this is to charge for connectivity and bandwidth. My contention is that the connections eventually will be very inexpensive - if not even free and that carriers will generate revenue based upon a set of services that a customer buys. VPN is only a small example. One should included hosted apps (ASP's), Multicast services, Web hosting, SLA's, etc.. I'm sure you can think of at least 10 of these that would apply. But, even from a more rudimentary view... you'll pay "x" for internet access, "y" for video streaming - perhaps on a per session basis, "z" for calling - and there are probably 100 different ways to charge for services here... the list goes on.

So, the discussion is not really focused on the kinds of services or solutions communications vendors offer but is more targeted at carriers and the way they'll differentiate themselves.

Oh.. fwiw, NT doesn't sell bandwidth or services. They sell the equipment which allows carriers to deploy bandwidth and services. NT is an equipment provider...unless they recently went into the services business when I wasn't looking.

OG
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