Glenn,
Corning is now focusing its business on fiber and component-level parts, getting rid of non-optical-fiber business. Corning is taking 29% market shares of optical fiber production, Lucent 15% and Alcatel 13%. Corning is definitely a leader, but facing some competition eventually from LU & ALA and other small Japanese companies (Fujkura, Furukawa, Sumitoma, etc.) for providing fiber glass materials. If Corning wants to get a high growth rate. It must become a strong component-level and system-level player for the huge bandwidth hungry with the double internet capacity per 3 months. It must compete with two giant system-level players, Lucent, and Nortel, as well as with those new or small players such as Ciena and CTC(O-CDMA).
The combination of JDS and Uniphase becomes a giant component-level supplier with the best talented people & variety of patents/products. Absolutely dominant company in fiber-communication world It will makes a great business sense if Corning buys DJ Uniphase. Therefore, Corning will become another "CICSO" in winning the bandwidth battle, enjoying the growth. Otherwise, Cisco, or LU, or NT, even Tellabs is going to buy JD Uniphase, only 5-6 billion, no big deal at all, in order to trace the huge profits. Another small competitor left over is SDL Inc. SDL stock is soaring as well.
As long as JD Uniphase does not want to sell itself, it is going to somehow monopoly the market. Another Intel!
Regards
Jason |
