quote.bloomberg.com
"Gear for fiber-optic networks will also be featured by many
equipment makers, industry watchers say. One of the hottest types
of equipment in fiber optic this year is dense wave-division
multiplexing, or DWDM, which increases the capacity of each
strand of fiber. "
Technology News
Sat, 09 Oct 1999, 2:46pm EDT
Telecom '99 Displays Dazzle While Real Decisions Are Made Behind
Scenes
By Kate Norton
Telecom '99 Displays Dazzle While Real Action Is Behind Scenes
Geneva, Oct. 9 (Bloomberg) -- While the flashy displays and
brightly lit corporate stands are designed to dazzle the more
than 200,000 visitors expected at Telecom '99 in Geneva this
week, the real activity will be going on behind the scenes.
Industry gatherings to talk shop and view the latest in
telecommunications technology abound, but the big draw to Telecom
'99, veterans of previous shows say, is the sheer number of
decision-makers and pace-setters present -- from Microsoft
Corp.'s Bill Gates and Cisco System Inc.'s John Chambers, to the
heads of some of the hottest start-up companies.
The pace of change in the industry has spawned a flurry of
mergers and partnerships unthinkable the last time this event was
held in 1995. This time around, the gathering is an opportunity
to lay the groundwork for future alliances.
''Some very big deals are done or cemented'' at this event,
said Roger Wilson, communications director for Hewlett-Packard in
Europe. Hewlett-Packard's joint venture with Sweden's Ericsson AB
to make network management systems for telecommunications
operators and service providers grew out of the Telecom 91
exhibition, he said.
Industry watchers say by far the biggest topic among company
executives huddling in meeting rooms at the Palexpo exhibition
site and in the bars and restaurants of Geneva will be how they
can better tap demand for Internet and data services -- via both
traditional phone lines and mobile.
Phone companies such as Deutsche Telekom AG and France
Telecom SA, meanwhile, could be among those scouting for new
opportunities to enhance their international offerings during the
event, analysts say. The two are eager to expand independently
after the German company's failed bid for Telecom Italia SpA
soured their decade-long partnership.
Shopping Spree
Cisco Systems Inc., Lucent Technologies Inc., Alcatel SA,
Siemens AG and other large phone equipment makers are likely to
take advantage of the slew of smaller companies attending the
event to help them continue their global shopping spree. All have
been aiming to keep pace with need for gear that speeds Internet
and other data services over phone lines buy buying needed
expertise.
''With so much action in the phone equipment industry going
on, it's hard to keep track'' of the new companies sprouting up,
said Peter Orr, a principal analyst at Gartner Group's Dataquest.
''It's very nice if they all come to you, and that's in
effect what happens through this event.''
The lure of new business is enough to ensure companies are
still splashing out millions of dollars on company stands, some
of which have taken months to construct, in spite of a growing
awareness of the need to cut costs. AT&T Corp., for example, is
slated to have one of the largest stands at the event, even
though it said last month it has frozen hiring and intends to
eliminate jobs under a plan to cut $2 billion in costs by 2001.
''The output in terms of business relationships and business
generated over the next four years is many more millions than the
cost of the show.'' H-P's Wilson said.
The Faster, the Better
Though product introductions may be secondary to making
contacts, companies with large displays won't pass up the chance
to show the best technology and equipment they've got. Like many
technology-related conferences today, the Internet will be a
central feature in many of the displays.
The wireless industry is buzzing about mobile phones that
feature a WAP, or Wireless Application Protocol, browser that
lets users access Internet information over their mobile phones.
Nokia Oyj, Ericsson AB and other mobile phone manufacturers are
expected to showcase the latest models and applications for WAP
phones, which will be making their debut this year.
Nortel Networks Corp. and other equipment makers are likely
to highlight gear that enables traditional phone networks and
wireless networks to carry Internet and data more efficiently, at
ever-higher speeds, analysts said.
France's Alcatel SA, meanwhile, is expected to be among
those touting the merits of advances in ADSL, or asymmetric
digital subscriber line, technology that lets traditional copper
wires carry data and Internet at high speeds.
Alcatel, which boosted first-half research and development
spending 25 percent largely for ADSL projects, is one of the
world's biggest sellers of equipment that uses the technology.
Gear for fiber-optic networks will also be featured by many
equipment makers, industry watchers say. One of the hottest types
of equipment in fiber optic this year is dense wave-division
multiplexing, or DWDM, which increases the capacity of each
strand of fiber.
World Telecom 99, hosted by the International
Telecommunications Union, runs from Oct. 10 to 17 at Geneva's
Palexpo center. More information about the event is available at
www.itu.int/TELECOM
|
