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Technology Stocks : Lucent Technologies (LU)

LU 2.445

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To: mrclinton who wrote (5161)	12/8/1998 11:14:00 AM
From: Mark Palmberg	Read Replies (3) of 21876

Courtesy of WSJ.COM: While the IBM network is believed to be profitable and has been an integral part of the telecom and data services that IBM has offered corporate customers since 1981, the assets themselves -- equipment such as switches, modems, routers and 1,375 phone connections -- are increasingly a commodity. Yet the network is costly to maintain: IBM typically spends $200 million a year upgrading it, industry executives say. IBM's top brass apparently concluded it wasn't economically worthwhile to keep up with the fast-moving telecommunications industry, especially as voice and data networks converge due to the Internet. Let's get that crappy Cisco equipment out of there and replace it with Lucent's machines. BWDHK Mark

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