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


To: Doug who wrote (15738)12/14/1999 9:05:00 PM
From: Tunica Albuginea  Respond to of 18016
 
Doug: Morgan Stanley Dean Witter "outperform" coverage analysis and answer to your " growth ",

TA

----------------------------------------

ÿÿÿÿÿÿÿÿÿ Newbridge Networks (NN): OUTPERFORM
ÿÿÿÿ The Last IP/ATM Pure-Play Alkesh Shah/David Jackson
ÿÿÿÿÿÿ 8/31/99
ÿÿÿÿ 52-Wk Sh EPS EPS EPS EPS EPS EPS 5-Yr Est.
ÿÿÿÿ Price Rng Div Yld (MM) F99A F00E P/E F01E P/E C98A C99E P/E C00E P/E Growth
ÿÿÿÿ 27 40 - 15 -- -- 182.5 $0.61 $0.98 28 $1.38 20 $0.61 $0.77 35 $1.33 20 30%
ÿÿÿÿ Fiscal year ends in April.

ÿÿÿÿ We have initiated coverage of Newbridge Networks with an
ÿÿÿÿ Outperform rating and a target price of $36, 27 times our
ÿÿÿÿ C2000 earnings estimate of $1.33 per share. The company
ÿÿÿÿ missed consensus estimates a number of times over the past
ÿÿÿÿ 12 months and is now rebuilding credibility with investors.
ÿÿÿÿ We believe that management is solving the production
ÿÿÿÿ problems that hindered growth and is beginning to articulate
ÿÿÿÿ a clear strategy for diversifying into Internet protocol-based
ÿÿÿÿ products. However, we expect that multiple expansion will
ÿÿÿÿ occur only with more consistent revenue and earnings growth.
ÿÿÿÿ With the recent acquisition of Ascend Communications by
ÿÿÿÿ Lucent Technologies (LU, $64, Strong Buy, target $85),
ÿÿÿÿ Newbridge Networks is the last asynchronous transfer mode
ÿÿÿÿ (ATM) pure-play for investors. Its key product is the
ÿÿÿÿ MainStreetXpress 36170 Multiservice Switch — accounts
ÿÿÿÿ for the majority of its sales and provides its fastest-growing
ÿÿÿÿ revenue stream. It is designed to carry diverse forms of
ÿÿÿÿ traffic, including voice, data, and video, with appropriate
ÿÿÿÿ quality of service. Newbridge is diversifying into
ÿÿÿÿ broadband access products and equipment to provide man-aged
ÿÿÿÿ Internet protocol (IP) services, but we expect most of
ÿÿÿÿ its revenues to come from its core ATM business for the
ÿÿÿÿ foreseeable future.


ÿÿÿÿ Investment Positives

ÿÿÿÿ Focus on rapidly growing market.
ÿÿÿÿ As carriers move to
ÿÿÿÿ packet networks and expand bandwidth in the local loop,
ÿÿÿ demand for ATM and IP-based switching and network man-agement
ÿÿÿÿ equipment is growing rapidly.

ÿÿÿÿ We estimate thatÿ growth in the market for enterprise,
ÿÿÿÿ edge, and core ATMÿÿ switches is currently more than 40% per year and should
ÿÿÿÿ continue at that rate for the next few years.


ÿÿÿ Pure data-networking play. Newbridge Networks offers
ÿÿÿÿ a pure-play opportunity to invest in the data networking
ÿÿÿÿ space.
ÿÿÿÿ Industry consolidation has shrunk the number of
ÿÿÿÿ pure-play data-networking companies sharply over the last
ÿÿÿÿ few years, as traditional providers of circuit-switched
ÿÿÿÿ equipment acquired providers of ATM and IP equipment.

ÿÿÿÿ Strong market position.
ÿÿÿÿÿ Industry analysts estimate that
ÿÿÿ Newbridge holds a significant share in the wide area net-work
ÿÿÿÿ (WAN) and core ATM switch worldwide markets.

ÿÿÿÿ The Yankee Group and International Data Corp. agree that
ÿÿÿÿ Newbridge leads the ATM edge and enterprise switch mar-ket
ÿÿÿÿ with more than a 26% share.
ÿÿÿÿ In the worldwide multi-service
ÿÿÿÿ backbone switch market, the Gartner Group esti-mates
ÿÿÿÿ that Newbridge held fourth place by share in 1998.
ÿÿÿÿ Newbridge's share was 18.5%, behind Nortel Networks
ÿÿÿÿ (NT, $43, Outperform, target $50) with 23.6%, Lucent/
ÿÿÿÿ Ascend with 27.0%, and Cisco Systems (CSCO, $67, rated
ÿÿÿÿ Strong Buy by Chris DePuy, target $75) with 28.1%.

ÿÿÿÿ Global, diversified customer base.
ÿÿÿÿ MainStreetXpress
ÿÿÿÿ products have been chosen for deployment by carriers glob-ally.
ÿÿÿÿ Recent contracts for Newbridge equipment include the
ÿÿÿÿ ACTEW Corp. (Australia, April 1999),
ÿÿÿ the Bulgaria Tele-communications
ÿÿÿÿ Co. (March 1999), Cable and Wireless
ÿÿÿÿ (March 1999), Global One (March 1999), and the
ÿÿÿÿÿ Zenzhou Telecommunications Bureau (China, March 1999).
ÿ

ÿÿÿÿ Newbridge Networks
ÿÿÿÿ Stock Price Analysis

ÿ

ÿÿÿÿ TECHNICAL VIEW (Philip J. Roth)
ÿÿÿÿ Support Resistance Next Resistance Medium-Term Trend
ÿÿÿÿ 23 - 24, 29 - 30 ,35 - 36

ÿÿÿ Award-winning products.
ÿÿÿÿÿ Newbridge's products are re-garded
ÿÿÿÿ as cutting-edge.
ÿÿÿÿÿ Carrier Scale Internetworking
ÿÿÿÿ (CSI), an open standards-based solutions framework devel-oped
ÿÿÿÿ by Newbridge and 3Com that enables service provid-ers
ÿÿÿÿ to deliver scalable, reliable, and easy-to-manage IP
ÿÿÿÿ VPNs over a multiservice ATM infrastructure, was praised
ÿÿÿÿ by the Yankee Group for lower total cost of ownership than
ÿÿÿÿ competing solutions.
Data Communications Magazine
ÿÿÿÿ awarded its Testers' Award to Newbridge in March 1999 for
ÿÿÿÿ the MainStreetXpress 32170's frame-relay-to-ATM-Internet
ÿÿÿÿ working capabilities.

ÿÿÿÿ Siemens relationship strengthens Newbridge's competi-tive
ÿÿÿÿ position.
Siemens and Newbridge formed an alliance
ÿÿÿÿ in March 1996 under which Siemens sells Newbridge prod-ucts
ÿÿÿÿ primarily to telecommunications carriers in Europe,
ÿÿÿÿ Latin America, Asia, and North America, and co-brands the
ÿÿÿÿ MainStreetXpress products with its own name. Siemens
ÿÿÿÿ provides marketing and support and allows Newbridge to
ÿÿÿÿ penetrate customers looking for a broad product offering
ÿÿÿÿ with the backing of a major diversified equipment provider.
ÿÿÿÿ Strong software content should maintain margins. We
ÿÿÿÿ believe that sophisticated network management will become
ÿÿÿÿ increasingly important, as single networks are used to carry
ÿÿÿÿ voice, data, and multimedia to different types of end-customers.

ÿÿÿÿ Investment Risks

ÿÿÿÿ Inconsistent results have depressed NN's multiple and
ÿÿÿÿ impaired the company's credibility.
Recent misses were
ÿÿÿÿ due to poorer-than-expected performance in Newbridge's
ÿÿÿÿ traditional time-division multiplexing (TDM) business and
ÿÿÿÿ the inability to raise production at short notice. In the last
ÿÿÿÿ quarter, the TDM business represented only 28% of total
ÿÿÿÿ revenue. While Newbridge beat consensus estimates by $0.02
ÿÿÿÿ in the latest reported quarter (April), we believe that it has some
ÿÿÿÿ way to go before investor confidence is fully restored.
ÿÿÿ Reliance on Siemens relationship. During the quarter
ÿÿÿÿ ended January 31, 1999, 20% of Newbridge's sales were to
ÿÿÿÿ Siemens, up from 16% a year earlier. For the nine-month
ÿÿÿÿ period ended January 1999, sales to Siemens accounted for
ÿÿÿÿ 16% of Newbridge's sales, down from 19% in the same
ÿÿÿÿ period a year earlier.
ÿÿÿ Declining revenues from enterprise and circuit-switched
ÿÿÿÿ products.
Newbridge's circuit-switched TDM business is
ÿÿÿÿ declining as service operators move to packet-switched networks.
ÿÿÿÿ Industry consolidation has strengthened Newbridge's
ÿÿÿÿ competitors. Providers of packet switching have been ac-quired
ÿÿÿÿ by larger telecommunication equipment suppliers.
ÿÿÿÿ They are consequently able to provide end-to-end solutions,
ÿÿÿÿ including ATM switching, optical backbone products, and
ÿÿÿÿ access solutions. Moreover, an increasing number of serv-ice
ÿÿÿÿ providers require vendor financing, which Newbridge's
ÿÿÿÿ larger competitors are able to provide.
ÿÿÿ Consolidation may disrupt Newbridge's OEM channels.
ÿÿÿÿ In addition to Siemens, Newbridge products are distributed
ÿÿÿÿ by Alcatel (ALA, $31, rated Strong Buy by Angela Dean
ÿÿÿÿ and Gareth Price Jones, target $35), Lucent, Cable & Wire-less,
ÿÿÿÿ Nippon Telegraph & Telephone
(NTT, $57, rated Out-perform
ÿÿÿÿ by Paul Saferstein), and other telecommunications
ÿÿÿÿ equipment suppliers. Diversified equipment providers are
ÿÿÿÿ striving to offer a range of products that satisfy all the needs
ÿÿÿÿ of their operator customers. This has led to consolidation
ÿÿÿÿ within the telecommunications equipment industry, marked
ÿÿÿÿ by a series of mergers during the last 18 months.
ÿÿÿ The pur-chaseÿ of data networking companies and product portfolios
ÿÿÿÿ by telecommunications equipment providers reduces their
ÿÿÿÿ incentive to distribute equipment from competing providers.

ÿÿÿÿ We expect continued data networking acquisitions by tele-communications
ÿÿÿÿ equipment providers.

ÿÿ ÿ IP will ultimately displace ATM.
ÿÿÿÿ ATM is currently the
ÿÿÿÿ technology of choice for value-added high-bandwidth serv-ices
ÿÿÿÿ and multiservice networks that carry both voice and
ÿÿÿÿ data.
ÿÿÿ However, enhancements to Internet protocol should
ÿÿÿÿ allow IP to offer robust quality of service. The intrinsic
ÿÿÿÿ benefits of Internet protocol, particularly its ability to cross
ÿÿÿÿ networks with different Layer 2 architectures, mean that IP
ÿÿÿÿ is likely to displace ATM as the technology of choice for
ÿÿÿÿ value-added, multiservice networks.
ÿÿÿÿ Revenues in Newbridge's January quarter might be im-paired
ÿÿÿÿ by enterprises slowing spending due to Y2K is-sues.
ÿÿÿÿ While the company states that it has seen no evidence
ÿÿÿÿ of an impending Y2K-related slowdown in aggregate de-mand,
ÿÿÿÿ we still believe that this possibility remains a risk.
ÿÿÿÿ To our clients and Financial Advisors: Every page in Market Watch
ÿÿÿÿ should be read in conjunction with the important disclosures in the pages
ÿÿÿÿ at the end of this report. Financial Advisors are not permitted to send
ÿÿÿÿ clients any pages of Market Watch unless the excerpts are accompanied by
ÿÿÿÿ these disclosure notes.

ÿÿÿ This memorandum is based on information available to the public.
ÿÿÿÿ No representation is made that it is accurate or complete. This memorandum is
ÿÿÿÿ not an offer to buy or sell or a
ÿÿÿÿ solicitation of an offer to buy or sell the securities mentioned.
ÿ
ÿ
ÿ
ÿ -------------------

Message #15738 from Doug at Dec 14 1999 8:15PM

Z.O: I appreciate your research. I have no doubts that outside the USA, ATM is alive and well.

In the USA , ATM was popular with Carriers and Enterprises that needed speed, reliability and data security. In the last few Quarters, IP has been gaining share
some claim at the expense of ATM(NN). It could be due to a number of factors. In brief in the USA the ATM picture is not quite clear. The question raised concerning
the U.S mkt are :

a: Existing Sales growth of ATM
b: Forecast growth of ATM switches vrs IP.
c: Forecast ATM switch capacity vrs existing demand.
d: Perceived long term trend for ATM vrs pure IP.

If NN is deciding to go it alone, I would like to know how NN can respond if ATM becomes less popular in the USA.

Thanks.

ÿ



To: Doug who wrote (15738)12/14/1999 9:21:00 PM
From: zbyslaw owczarczyk  Respond to of 18016
 
Doug, if you know the answer to you question you will have to go to those who claim that IP is taking shares form ATM.
If anything it is reverse.
LU or NN do not see it.
If your read some journalists it is your money and I am tired
to find it out the answer for you.
Talk to LU, NN about this.
As for ATM in US. "I did not realized" and first lerned from you that in US popularity of ATM is week, specially after SBC decided to make big investment in ATM space (Pronto project. BTW, you should sometime listen to CC to look for answers.On CC re:Pronto lots of thing you are asking were spoken out
Is SBC in US or Eu?????????
I wrote to you about SBC and you are coming again with the same question.
SBC covers 40% of US local line!!!
One more thing, why Sprint shifted from TALB solution and decided to go with ATM solution.
Search TLAB/FON news on Reuter to find out about FON decision.
Just the few examples
Show me any very major ROBC MCI or ATT building IP networks based on startup gears- all IP, and I am talking about spending at least 25 millions US.
Not such thing.
Doug you are reading to much popular articles writen by people with no idea what they are writing about.
If you have serious money in NN go and talk to industry people, go to show to search for answer.
Remember it is your money.

And this is the end of our conversation about popularity of ATM in US or EU for some time.

Zbyslaw



To: Doug who wrote (15738)12/14/1999 10:14:00 PM
From: Tunica Albuginea  Respond to of 18016
 
Doug: more IP over ATM:SPRINT DITCHES TLBS for new IP + ATM infrastrucuture:

cbs.marketwatch.com

Tellabs drops after Sprint
decision
Analysts remain positive


By Tomi Kilgore, CBS MarketWatch
Last Update: 4:25 PM ET Nov 24, 1999
NewsWatch
Telecom
Report

LISLE, Ill. (CBS.MW) -- Shares of Tellabs closed
down 2 7/8 at 70 3/8 after the telecommunications
equipment company said late Tuesday that Sprint Corp.
halted implementation of a program in which a new
Tellabs product was being tested.

The program, known as the JCS 2000,
was an internal Sprint (FON: news,
msgs) development project established
to replace the carrier's long-distance
infrastructure with a next-generation,
voice-over-ATM architecture.


Overall, analysts remained positive on Tellabs' (TLAB:
news, msgs) shares, saying weakness provides a buying
opportunity.

----------------------------------

Message #15738 from Doug at Dec 14 1999 8:15PM

Z.O: I appreciate your research. I have no doubts that outside the USA, ATM is alive and well.

In the USA , ATM was popular with Carriers and Enterprises that needed speed, reliability and data security. In the last few Quarters, IP has been gaining share
some claim at the expense of ATM(NN). It could be due to a number of factors. In brief in the USA the ATM picture is not quite clear. The question raised concerning
the U.S mkt are :

a: Existing Sales growth of ATM
b: Forecast growth of ATM switches vrs IP.
c: Forecast ATM switch capacity vrs existing demand.
d: Perceived long term trend for ATM vrs pure IP.

If NN is deciding to go it alone, I would like to know how NN can respond if ATM becomes less popular in the USA.



To: Doug who wrote (15738)12/14/1999 10:53:00 PM
From: Tunica Albuginea  Respond to of 18016
 
Doug: IP will result in Traffic GRIDLOCK: N. Y. TIMES:

Multimedia Transmissions Drive Net Toward Gridlock



TA

---------------------------------------------------
nytimes.com

August 23, 1999

Multimedia Transmissions Drive Net Toward Gridlock


By SARA ROBINSON

Like a nation's highway system, the Internet has
traffic rules that prevent chaos and gridlock.
But an
increasingly popular type of multimedia traffic is
turning out to be a cyber road hog that flouts the rules
and creates traffic jams.

This scofflaw traffic, known as streaming media, is
widely hailed as the future of home entertainment,

capable of eventually delivering high-quality audio and
video programming over the Internet.

Unfortunately, network experts warn, it may drive
everyone else off the road.


Streaming media is analogous to broadcast media in
that the audio or video material is produced as soon as
a computer receives the data over the Internet. The
problem is that the streaming data does not respond to
network congestion in the way other Internet traffic
does.


When a computer sending conventional data encounters
congestion, it significantly slows its own transmission
rate, but a computer sending streaming data will reduce
the flow only slightly. So if streaming traffic competes
with conventional traffic for the same congested strip of
roadway, the streaming traffic, like some VIP
motorcade, assumes the right of way and lets all other
data traffic pile up.

The difference, said Van Jacobson, chief scientist for
Cisco Systems Inc., a leading maker of Internet traffic
routers, is that conventional traffic "is polite; this stuff
is impolite."


"People writing software for that traffic -- they don't
care," Jacobson said of streaming media. "In the long
term, it's a problem."


By its very nature, streaming media has to flow
continuously to the user's computer, so it cannot follow
the same traffic rules as conventional data.
But even so,
it is possible for packets of streaming data to interact
civilly with other traffic on the Internet. The reason they
do not, Jacobson said, is that streaming media
providers have no incentive to comply with traffic
rules.


Today, he said, "if Real Networks is polite and
Microsoft isn't, then Real looks crummy."

Even elbowing all other data aside, today's streaming
media produces a very low quality of entertainment
most of the time.


Much of that lack of quality today is a result of slow
modems at the user's end. In three to five years, when
cable modems and souped-up digital telephone lines
are expected to be common, most Internet users may be
listening to live Webcasts or playing high-quality radio
on their computers. In 10 years, movies and
commercial television might very well be carried over
Internet channels.


This increasing demand will add vast amounts of
streaming traffic to the Internet and could lead to what
Jacobson calls "congestion collapse" -- the Internet
equivalent of gridlock.


Internet service providers are also concerned.

Tony Blake, vice president for marketing and business
development for AT&T Labs Research, calls the trend
disturbing, adding, "What people are saying is, 'If my
stuff gets through, that's all I care about."'
He said
AT&T and other Internet service providers were
pressuring the producers of streaming media to head off
the problem before it grows out of control.

Streaming media traffic is also of growing concern to
the Internet Engineering Task Force, an industry group
that is the closest thing the Internet has to a governing
technical body. Jacobson, an active task force
participant, said the group has not yet formally
addressed the issue, because "it's not big enough to kill
the Net."

Not yet anyway. But a number of Internet service
providers are getting nervous.

Jacobson said he would like to see streaming media use
congestion controls that are compatible with those used
for conventional data-packet traffic.

Today, according to measurements by the National
Laboratory for Applied Network Research at the
University of California at San Diego, none of the
existing streaming media providers are using such
controls.

Real Networks, the largest streaming media provider,
declined to respond to the growing criticism, although a
spokesman, Jay Wampold, said the company was trying
to address congestion problems. Over the last year, he
said, Real Networks had installed a network of
computers for delivering the company's broadcasts that
bypasses the Internet's main traffic routes.

Kevin Unangst, lead product manager for Windows
Media, the streaming media division at Microsoft
Corp., said the company was working with network
companies to route its streaming data around the
Internet's main arteries.

"We know bandwidth and optimizing bandwidth is a
huge, huge issue," Unangst said, using an industry term
for transmission capacity, "and we're covering all the
bases."

But Jacobson said that while actions like those taken by
Real Networks and Microsoft might help, they would
not resolve the problem. The bottlenecks are not on the
main thoroughfares, he said, but on the side streets and
access roads.

"As you get out to the edge of network, closer to users,
that's where the bandwidth gets limited," he said.

While cable modems and digital subscriber lines will
increase bandwidth to the home, a truly significant
increase in Internet bandwidth would require ripping
out 300 million copper wires and replacing them with
fiber.

"That's not going to happen fast," Jacobson said.


The remedy, experts say, lies in providing incentives
for streaming media providers to comply with traffic
rules.

With the proper incentive structure in place, streaming
material from both Microsoft and Real Networks
would look slightly worse than it does now, Jacobson
said, but at least the competition for bandwidth would
be fairer.


As a standards-setting organization, the Internet
Engineering Task Force does not have legal authority to
force software developers to adopt congestion-control
measures.

But standards, which enable all the computers linked to
the Internet to talk to one another, can sometimes be
used to discourage disruptive behavior.

"It's the tragedy of the commons," said Sally Floyd, a
researcher at the AT&T Center for Internet Research at
the International Computer Science Institute in
Berkeley, Calif. "Only with the right incentive structure
do the right things happen."

The "tragedy of the commons" is an example from
economic game theory. If a group of farmers must graze
their cattle in the same small patch of grass, or
commons, it is in the farmers' collective interest not to
overgraze, lest all the grass die out and all the cows
starve. The problem is that it is in each individual
farmer's interest to act counter to the common good.

Ordinary Internet traffic -- e-mail and data
transmissions to and from Web sites, for example --
follows a basic set of traffic laws known as the
transmission control protocol, or TCP.

Since the late 1980s, when rising Net traffic led to
severe congestion problems, TCP has included a
congestion-control mechanism that instructs a
transmitting computer to slow the data flow by half as
soon as the data it is sending encounters congestion.
Only when the congestion clears does the data speed up
again.

"What's interesting is that congestion itself is
effectively the error signal that gives the sender the
feedback to speed up or slow down," said Robert J.
Berger, president of Internet Bandwidth Development,
a consulting firm in Saratoga, Calif. "It means that there
will almost always be at least a bit of congestion, but
that's OK."

But it is not OK when traffic that conforms to TCP runs
into traffic that does not follow those same rules. When
the point of congestion is reached, TCP traffic cuts its
sending rate in half. But streaming traffic just barrels
through the stoplights. This in turn creates more
congestion, which further slows the law-abiding traffic.

Streaming media traffic "needs to back off,"
said Scott
Shenker, head of the AT&T Center for Internet
Research in Berkeley. "I think most researchers feel it's
a flaw in the Internet architecture that there's no way to
deal with this."

Both Shenker and Jacobson believe the solution to the
streaming media problem is to build incentives into the
architecture to encourage good behavior. But they have
very different ideas of what form those incentives
should take.

Shenker prefers to plant a mechanism within Internet
routers that he calls "fair queuing," which would force
packets sent from different sources to wait their turn to
be sent.

Jacobson's proposal, developed with Ms. Floyd in
1989 and only now being tested in Cisco routers, uses a
kind of virtual penalty box. When the router
experiences congestion, it takes a random sample of its
traffic. If a certain host computer is overrepresented in
that sample, its packets are placed at the end of the line.

This creates the right incentive structure, he said,
because the Internet service providers do not have to
persuade Real Networks or any other company to obey
the rules. Rather, he says, "The customers do instead,
because the quality" of their audio and video "gets
really crummy."

Fair queuing and penalty boxes rely on software fixes
to change the incentives. Another approach, favored by
many service providers, is to create economic
incentives for fair sharing of the roadways. The basic
idea is that heavy users should be paying for the extra
bandwidth that they consume.

This model, known as differential service, is already
being deployed on the Internet. But there are many
questions about how it should be adapted to streaming
media -- especially about who should pay.

"The real puzzle about streaming media is who is going
to make the money -- if we knew this, then we could
answer a lot of the technical questions," said David
Clark, a senior research scientist at the Massachusetts
Institute of Technology's Laboratory for Computer
Science.

Whatever solution is eventually adopted, the streaming
media problem is certain to be resolved, these experts
say.

"An Internet that's growing and can handle streaming
media is in everyone's interests," said Blake of AT&T
Labs. "We poke each other with sharp sticks all the
time, but slowly we move forward."

Related Sites
These sites are not part of The New York Times on the Web, and The
Times has no control over their content or availability.

Cisco Systems Inc.

Real Networks

Microsoft

AT&T Labs Research

Internet Engineering Task Force

National Laboratory for Applied Network
Research

AT&T Center for Internet Research

Internet Bandwidth Development

Massachusetts Institute of Technology's
Laboratory for Computer Science

----------------------------

essage #15738 from Doug at Dec 14 1999 8:15PM

Z.O: I appreciate your research. I have no doubts that outside the USA, ATM is alive and well.

In the USA , ATM was popular with Carriers and Enterprises that needed speed, reliability and data security. In the last few Quarters, IP has been gaining share
some claim at the expense of ATM(NN). It could be due to a number of factors. In brief in the USA the ATM picture is not quite clear. The question raised concerning
the U.S mkt are :

a: Existing Sales growth of ATM
b: Forecast growth of ATM switches vrs IP.
c: Forecast ATM switch capacity vrs existing demand.
d: Perceived long term trend for ATM vrs pure IP.

If NN is deciding to go it alone, I would like to know how NN can respond if ATM becomes less popular in the USA.