Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 212.82

+1.4%

10:30 AM EST

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To: Dee Jay who wrote (1490)	1/2/1997 11:22:00 AM
From: David Lawrence	of 61433

Dee Jay, I wholeheartedly agree that Rockwell based ISPs are not going to throw out their hubs to replace them with USR hubs. However, there is a good likelyhood that many of them will add USR hubs so they can offer x2 capability. The converse may be true for USR based ISPs, but of course there is no pressure on them, since it will be awhile until any Consortium based products are even available. Microsoft bucked the Apple trend, then Apple bucked the Microsoft trend. Where are they now? Whose shareholders fared better? What will the landscape look like of USR's x2 winds up as the standard, particularly if the Consortium's hybrid chipset is incompatible? You may be right that Ascend will "underwrite" some of the cost of the requisite hardware upgrades. However, hubs represent an overwhelming percentage of Ascend's revenue and profit stream, and any incentives are pure cost and flow right to their bottom line, and thus to their stock price. USR has no such cost, nor do their ISPs, a big advantage in a highly competitive RA market. David

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