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Technology Stocks : Nortel Networks (NT)
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To: Bill who wrote (6834)9/14/2000 12:25:25 PM
From: Kenneth E. Phillipps  Read Replies (2) of 14638
 
I need an explanation. How will Verizon avoid leasing lines from wireline operators in some market by Nortel integrating its wireless and optical platforms? The question seems important because it would allow Nortel to leverage its dominance in optical into the wireless space. Maybe Telecomguy can help us with this one.

"Nortel will use its wireless and optical platform to create a switchless network that spans both sides of the
operation. The benefit for Verizon is not just that it gains optical data speeds on the wireline side but a new
opportunity to avoid leasing lines from wireline operators in some markets."...

"While Lucent and Cisco Systems (a partner to both Lucent and Motorola) offer optical solutions, Nortel was the first to pound the IP message home to wireless carriers. Nortel has gone so far as promising operators it could tie an optical core to its advanced radio systems to get data transmission costs down to the level of landline.

Nortel’s promise is that it will reduce operating costs so far that wireless data providers can compete with other
telecom companies on the basis of cost as well as services. The cost-benefit analysis features upgrades scheduled in line with traffic and revenue forecasts that help operators finance phased deployments."
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