In fact, could it not be the case that the competitive threat posed by this merger
could be met by hasty upgrades and fixed capital investments from the other
competing telcos as they jockey for position (and hence create sales of NN's
ATM equipment, etc.)?
Yes, indeed. That's what I'm thinking, too. As is Ian Stromberg, in another post.
I'm hoping TM will sell bullets to either side. :)
Actually, I'm slightly less optimistic. Local competition(voice) just started in Canada this year. Competition for Data has existed for several years. Yes, NN will sell to both sides, but I don't think too many businesses will move their voice or data traffic to an unknown entity quickly. ...especially when their very survival depends upon it.
Saw the following at the Motley Fool site, does anyone have access to the Dell'Oro report?
Cisco jumped $2 5/8 on Tuesday after an analyst highlighted results of a new study by networking market research firm, the Dell'Oro Group.
I obtained some additional details of the Dell'Oro report today. According to that study, Cisco captured 45% of the LAN switch market in the first quarter of 1998, up from a 36% share in the preceding quarter. Moreover, the total LAN switch market itself increased 6% quarter-over-quarter, to $1.5 billion in revenues.
Results in the ATM switch segment were equally positive for The Kid.
The ATM WAN market increased by 13% sequentially, to $397 million, and Cisco increased its leading share of that segment by 1 percentage point, to 31%. Newbridge Networks (NYSE: NN) held the second slot according to Dell'Oro with a 24% share, down 2 points. |
