Trey,
My experience with RBOC planners (and I'd worked on various projects for several RBOCs, including NYNEX and Bell Atlantic) tells me that RBOCs always end up with multiple suppliers. The strategic advantages of maintaining viable competition between equipment manufacturers tend to outweigh the operational benefits of having uniform equipment across the network, be it in switching,transmission or distribution. This is why interoperability and standartization are so high on the RBOC priority list.
Therefore, ALA/DIGI deal does not mean that WSTL will be driven out of business, as long as they maintain working relationship with LU. This is virtually guaranteed by the huge installed base of LU CO and carrier products.
In the same time, I don't see any urgent need for LU to buy WSTL and
judging by today's trading, ALA/DIGI deal is clearly viewed by the financial community as being detrimental for WSTL.
An unfortunate turn of events for WSTL longs considering that we may still see a broad market selloff. On the other hand, things could be much worse - at least the sector as a whole got a lift and LU takeover speculation could lend WSTL some support.
Regards,
Y. |
