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

To: Gregory Rasp who wrote (3974)	12/18/1999 9:26:00 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

Nortel says fiber optic market is growing twice as fast as they expected - They estimate the market for fiber optic products will be $35 billion in 2001. nationalpost.com Nortel moves fast on fibre-optic investment Estimates market worth $35B by 2001 Robert Gibbens Financial Post MONTREAL - Nortel Networks Corp. said yesterday it is speeding up its massive investment in fibre-optic products, the fastest-growing sector of its global business, in Montreal because of the explosion in Internet traffic. As a result of the expansion, the company intends to hire over the next year nearly 1,500 engineers and technicians, bringing the total Quebec payroll to well over 6,000. The company broke ground yesterday on an office extension and a new testing plant at its new campus in suburban Saint Laurent, together covering 500,000 square feet and costing more than $120-million. "Our objective is to triple optical products capacity in 2000, expanding our older systems manufacturing plant nearby in Saint Laurent and linking it up with Qtera Corp., the newest family member, whose fibre network technology will help us hold our lead in the Internet equipment market," said Ian Craig, executive vice-president. On Wednesday, Nortel acquired Qtera Corp. of Boca Raton, Fla., for $3.25-billion (US). Qtera is thought to possess a technology that makes optical networks work more cheaply across longer distances. When Nortel first decided to centre its global fibre-optic products business in Montreal several years ago, it estimated the market at $6-billion in 1999, he said. In fact it will be $12-billion, rising to $35-billion in 2001 as computer communications and e-commerce mushroom. To meet the demand, Nortel will continue to invest heavily in Montreal, he said. Nortel's products and competing optical products speed digital transmission on fibre-optic lines exponentially -- Nortel claims the technological and market leadership. John Roth, Nortel's chief executive, has been a vocal critic of Canada's tax environment, saying relatively lower income taxes in the United States make it difficult for high-tech firms to retain talent. Brian McFadden, general manager of Nortel's optical networks division, suggested the so-called "brain drain" mostly affects mid-career professionals and isn't as much of a factor when luring young talent. "We'll find most of the new hires from Quebec universities and colleges and smaller firms, and from other provinces and Europe. But the problem is the mid-career level. We're good at getting them in, but it's hard to hold them when they see the much more favorable environment in the U.S."