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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (15673)	12/14/1999 1:48:00 PM
From: Tunica Albuginea	Respond to of 18016

Doug I agree that there is a lot of money to be made at the edge. NN however has chosen to address Telcos and the core backbone. There is a giant market there. I think howeverÿ that a giant amount of people areÿ overestimating IP telephony now in the Carrier space. It is poor quality .I think it will be many years before that is fixed. Meanwhile, until IP Telephony gets to excellent ( 6-10 years ) the Carriers are going to take ISPs and CLECs by the neck and snap it. Carriers will come in with one-cheap-price-package of voice-video-data and it will kill the little guys. We already saw MCIs debacle in downtown Chicago usingÿ flimsy ASND switches. NIPPON T&T is never going to allow that to happen. For the Carriers ATM is a must. Hooked to routers/going optical.ÿ NN is the leader in ATM. I think it is also conceivable that NN can partner with a Juniper or Sycamore etc. and offer an ATM+OpticalIP router solution . There is one born everyday. When the bubble collapses you will see PEs come down significantly and the Junipers will rethink strategy. I am not going to go over the past under performance of NN. Anybody interested in NN knows that already. The point we need to focus is onÿ why after 7 disappointing eps , NN has still come back.ÿ The answer is because people understand the reasons for that.ÿ And those have nothing to do with the company's ability to deliver top technology. And so they have given the co chances to come back. That has ben hard: trying to beat the Leaders in the US from a foreign land:Canada. But Canada is not the boondocks.They have great technology. And through NT andÿ NN it is now beginning to be recognized worldwide. The US Carriers now that they are being pursued at the heels by little varmint ( ISPs CLECs ) following telco deregulation, will no longer give CSCO 2 years to develop an ATMÿ like they did before. Or give LU/ASND another chance to blow Chicago. They will go with NN Trust me on this: It will be at least 6-10 years beforeÿ an all optical network, covering allÿ 5 continents , will be built. Meanwhile we are going ATM +IP. I strongly believe NN has a solution for this, TA