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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (8475)	7/2/1999 8:57:00 AM
From: Kenneth E. Phillipps	Respond to of 21876

Telstra did not break down the contract values but Lucent is understood to have won about 60 per cent of the total amount being spent. (ouch!) theaustralian.com.au

To: William Hunt who wrote (8475)	7/2/1999 9:09:00 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 21876

Conflicting News Accounts on the Telestra deal Nortel Networks secured the largest contract, providing the core network, including the IP technology, and high-speed data services such as frame relay Nortel said the contract is worth between $100 million and $200 million over five years, and it follows its successful bid in March to supply Telstra with CDMA (Code Division Multiple Access) wireless phone services. Telstra spends big to upgrade its networks By Bloomberg News Special to CNET News.com July 1, 1999, 3:40 p.m. PT URL: news.com Telstra, Australia's dominant telecommunications company, will spend up to $400 million in the next five years in the first phase of overhauling its networks to benefit from the explosion in Internet and data communications. Melbourne-based Telstra said it will spend up to $400 million bringing its networks to Internet protocol standard, in a bid to dominate the market for high-speed data and Internet services. "Internet and data traffic on our network is doubling every six months," said Gerry Moriarty, Telstra's head of network and technology. "In the future all services will be carried by Internet protocol (IP) and the public phone network will be phased out in a ten year period. We expect all of our customers will have broadband access in some form." Australia is ranked third in Internet use per person behind the United States and Finland, and the number of regular Internet users is expected to reach two million, or 11 percent of the population, by the end of the year. Telstra has spent billions of dollars in the past few years converting its network to digital standard, and its latest project, dubbed the "data mode of operation," will run for five years. The first stage involves overhauling its main networks, followed by expanding its broadband access services such as cable modems, and then upgrading its services management technology. Nortel Networks secured the largest contract, providing the core network, including the IP technology, and high-speed data services such as frame relay Nortel said the contract is worth between $100 million and $200 million over five years, and it follows its successful bid in March to supply Telstra with CDMA (Code Division Multiple Access) wireless phone services. Telstra is already Australia's largest Internet service provider, and it's moving quickly to gain ascendancy in the Internet and data market. "The major challenge for Telstra will be for its culture to change so they can reap the benefits of the IP technology," said Paul Budde, which runs his own research firm Paul Budde Communications. "They also need to develop applications and services that they can charge for and get consumers to spend more on these new services." Alcatel, Europe's No. 2 phone equipment maker, won the contract to supply Internet telephony technology, along with Cisco Systems, the No. 1 maker of Internet equipment. Alcatel will also provide network management solutions, while the world's No. 1 phone-equipment maker Lucent Technologies will provide technology known as the gateway that converts data to IP standard. Copyright 1999, Bloomberg L.P. All Rights Reserved.

To: William Hunt who wrote (8475)	7/2/1999 5:48:00 PM
From: Mark Palmberg	Respond to of 21876

From: http://dailynews.yahoo.com/headlines/bs/story.html?s=v/nm/19990702/bs/telecoms_nortel_1.html ''I think Nortel's stock is rising based on two factors -- relative valuation to Lucent, which is trading at a higher multiple, and a steady flow of contract announcements from Nortel that may not actually be that important.'' ''What day goes by they don't sign more contracts?'' asked Fred Ketchen, director of equity trading at ScotiaMcLeod in Toronto.