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Technology Stocks : Nortel Networks (NT)

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To: The Phoenix who wrote (6689)9/5/2000 3:43:19 PM
From: telecomguy  Read Replies (1) of 14638
 
Gary, you post such a inconsequential little PR from a desperate AT&T and try to make some big conclusion from it.

Why bother?

As for the Roth's statement, that interview was aroud 6 months ago and in case you don't know yet, NT is not just selling PBX's to PTT's (and oh by the way, PTT's are not just selling long-distance either).

Try this one for more meaningful trends. PTT's and traditional Telephony Carriers are buying up IP companies left & right. This will continue for long time until most of the backbone and large national ISP's are owned & controlled by the Telcos (Telcos as in TELEPHONE COMPANY).

To suggest that Telephone companies are going do die or dissappear because of free telephony revolution brought on by IP revolution is hype at worst and pure ignorance at worst.

Once the Telcos, real Carriers, & PTT's buy up remaining struggling data wanna-bee's, you will see them develop proper pricing models in the data world that more resemble the current fee-for-bandwidth model in the LD world where companies actually make money enough to invest & maintain their network so that it actually is 99.99999999% reliable.

Do you remember that %? It didn't come from Chambers by the way as a hint.

Here are some long-term truisms you should understand.
1) Bandwidth is not free
2) He who controls the backbone and the core of the network will eventually control networking and pricing of that network.
3) These Carrier's Carrier who own the core will MAKE SURE they charge enough to make money & invest in their infrastructure. After all, they are in it to make profit for their shareholders?
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