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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who started this subject	6/12/2001 4:16:21 PM
From: EnricoPalazzo	Read Replies (1) of 54805

The Empire Strikes Back Lucky for Chambers we have a republican at the helm of the anti-trust division: boards.fool.com Regarding CSCO, you are correct that they are doing whatever it takes to get market share back from JNPR. A company I'm familiar with recently got an interesting offer from CSCO. The company recently installed several million in JNPR equipment in its backbone but was having trouble making bandwidth sales (still true for almost all of the service providers). CSCO told the carrier that if they would replace the JNPR equipment with CSCO it would BUY BACK the JNPR equipment at its depreciated value. In addition CSCO would agree to sell the carrier's bandwidth products through its own sales channel. The key was the carrier had to make a commitment to have a 100% CSCO network. If completed the JNPR buyback would cost CSCO millions up front, not to mention the cost of adding this carrier's bandwidth products to its own product line and sales training. The service provider turned down the offer because it was determined that too much disruption would take place in the network at a critical time and they don't want to be totally dependent on CSCO.

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