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Technology Stocks : Nortel Networks (NT)

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To: Kenneth E. Phillipps who wrote (5211)3/29/2000 8:53:00 AM
From: Curtis E. Bemis  Read Replies (1) of 14638
 
Don't know about the "low margins" thing, but, it seems to me that the lowest margins would be when you give the stuff
away. Many suppliers try that. It is incorporated in what
I call the the "GRF effect". There are lessons to be learned here--be careful.

I remember the sheer speed that the largest ISPs have to deploy new hardware in order to keep ahead of the traffic demands. As a result, they tend to write off such purchases
in about 18 months. Have heard many state similar. So it
will take about that long for a new supplier to disappear.
Of those you mention, the clock is ticking for them.
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