You're right regarding switch prices. In this particular contract, they're at the $300,000 level.
The Guangdong contract represents phase one and is estimated to be complete within a year. This is the largest province in China with a population of 100 million and has the largest digital data network in the country. Roger Fung has been heading NN's China business for twelve years and has developed a solid presence in that area.
The Panhandle Telephone contract validates NN's ADSL initiative --- fully integrated, fully managed from end to end, it offers carriers a means of differentiating services. Focus is SOHO, not residential.
I asked about LMDS and got a sense it's an exciting area but not to the stage where there'll be any major announcements. The pony's getting legs.
When I asked how Cisco's $2 billion buyout of GeoTel affected NN's affiliate, Ubiquity, I was told it was extremely positive. They're definitely in the same space and Ubiquity's won many awards and has been shipping products for several years. Another family jewel few know about.
Next I asked for an update on C&W and was told the contract has many pieces, including US, that will be made known over time.
Morale in Europe is high. New EVP, Pearce Flynn, doing a great job.
As for the quarter, there'll be no surprises on TDM (a relief) and a good possibility of up-side on ATM.
Feels great!
Pat |
