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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (3780)	11/12/1999 11:58:00 AM
From: Kenneth E. Phillipps	Respond to of 14638

Bosco - Open IP Environment stands on its own merits. As you pointed out, some 75 product developers have signed on to use it in the development of their products. The cutting of prices on routers is another issue. It can also be justified as an attempt to commoditize routers. Why pay a lot of money to buy an expensive router when you can get the functionality you need for much less expense. The strategy just happens to focus on Cisco because of their dominance in routers. By the way, Lucent benefits enormously from Open IP. Lucent will encourage vendors to develop software applications for its products. It will be very interesting to see how this plays out.

To: Bosco who wrote (3780)	11/12/1999 12:03:00 PM
From: The Phoenix	Respond to of 14638

Bosco, You clearly haven't been paying attention. Cisco makes a habit of funding companies and spinning them in. So I'll leave the fate of ONI up to you. I do think that Nortel is concerned that Cisco will learn more about optics through ONI. Secondly, think of these business tactics as a war. Cisco is attempting to take the war onto NT's territory by penetrating thier holdings in optical. Thus their recent purchases (cerent, monterry, and investements). Nortel can fight this fight head on or circle around and attempt to cut off or reduce the infrastructure that's supporting the fight in the optical space. So, if they take the battle to Cisco's turf - routers - then Cisco will be forced (Nortel's hope) to retrench and protect their own markets. The result will be that Cisco will have less time and energy to spend on winning the battle in... or breaking into.... the optical space. This effort by Nortel is simply a defensive move to get cisco off their backs. JMO. OG