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Technology Stocks : Nortel Networks (NT)
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To: Bosco who wrote (7273)10/12/2000 11:12:44 AM
From: The Phoenix  Read Replies (1) of 14638
 
Bosco,

I agree... that NT has little to lose. The BAY purchase didn't pan out the way NT had hoped... this is an excellent attempt to undermine CSCO. However, if appliances cost too much on the shelves due to requisite - perhaps unnecessary components - then the services will not be deployed. I however don't think this is what will happen. Rather I suspect those Consumer electronics manufacturers that don't put routing code and the associated components in their devices will undersell those that do and win market share. Those vendors that are selling more expensive producs will be forced to abondon their strategies. Remember - the CE vendors will have to pay NT royalties. Will there be a incremental value to the consumer for this code??? If not, then the incremental cost of the royalty will be impossible for the CE vendor to support - and to repeat this doesn't take into account cost of additional memory.
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