BWAC,
1) Promatory contract news, nothing on the number of CO's,
2) Pairgain contract news ~1000 CO's,
3) Promatory required a partner to beat Pairgain,
4) Promatory/Nortel create OEM agreement,
5) Nortel purchases Promatory,
6) Nortel provides $225 million in vendor financing
7) @link goes with Nortel/Promatory,
8) Pairgain hopefully still has that $25 million initial order.
IMHO, Pairgain received a contract because they invested ~1 million into @link. The whole @link deal changed when Nortel and Promatory agreed on an OEM contract late last year and Pairgain did nothing, unless merging with ADC was their plan. Pairgain could clarify this @link deal in the next CC.
Maybe I'm missing something but the CLEC's by nature do not have a ton of cash to purchase DSLAM equipment. These are new data centric companies which require financing. Pairgain can't provide financing, support or bundling, thus they must merge to compete.
We should thank kbrou for the details. Pairgain has told us nothing on the details. |
