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

To: Kenneth E. Phillipps who wrote (4535)	1/27/2000 5:44:00 PM
From: Kenneth E. Phillipps	Respond to of 14638

Nortel's New Independence May Signal More Buys Updated 4:05 PM ET January 27, 2000 By Susan Taylor OTTAWA (Reuters) - Newfound independence from corporate parent BCE Inc. could unleash another wave of acquisitions by Nortel Network Corp.(NT.TO)(NT.N), one of the world's biggest communications equipment suppliers. Analysts suggest that Nortel, which will move out from under its BCE's wing in a spin-off plan announced late on Wednesday, will likely focus its attention on the red-hot fiber optic gear sector. BCE (BCE.TO)(BCE.N), Canada's largest telecommunications group, has unveiled a scheme to give shareholders 37 percent of its Nortel stock, valued at C$72.4 billion ($50.6 billion) based on the closing share value of Nortel stock on Wednesday. BCE will maintain a 2 percent stake in Nortel under the deal, which is expected to close in the second quarter. The markets sent BCE to nearly 6.5 percent higher on Thursday, while Nortel shares fluctuated before easing 4.5 percent in afternoon trade on the Toronto and New York stock exchanges. A heavy stream of Nortel shares traded hands -- almost 9 million in New York and 5.4 million on Toronto -- as the market sifted through the deal and peered at its ramifications. Analysts quickly squelched earlier suggestions that removing the large ownership block makes Nortel an easier takeover target. Independence now positions Nortel to continue its aggressive acquisition drive, they said. "It does mean the firm is more easily able to do acquisitions because it doesn't have a 40 percent shareholder that it has to keep informed of the process and effectively get permission from," said Rob MacLellan, analyst at CT Securities in Toronto. "You will have the odd daydreamer speculating that it makes Nortel easier to be acquired -- I think two years ago that had a very strong chance of being proposed by somebody south of the border." Since then, Nortel stock has soared to trade at C$139 on Thursday on the Toronto exchange, a 245 percent gain from the 52-week low of C$40.25. Nortel's present stock premium presents a steep price tag which makes a takeover highly unlikely, analysts said. Brampton, Ontario-based Nortel, which competes in a market renowned for high-priced purchases of start-ups, is expected to purchase companies that develop technology for fiber optic networks, a sector experiencing explosive growth. "In the telecom space you have to be a buyer of new technologies -- otherwise you're going to lose your position," said Chris Stix, analyst at SG Cowen Securities in Boston. "You just can't invent it all internally, it doesn't work that way anymore." Optical expansion is a logical choice, though Stix said Nortel may consider purchasing voice switching technology to augment its internal research efforts. With its strong growth in sales for its optical network gear, Nortel may want to pursue acquisitions that allow it to increase or maintain its momentum in that sector, said MacLellan. Nortel's optical gear revenue could reach $10 billion in 2000 from about $6 billion in 1999, representing a large portion of annual sales which are expected to hit $26 billion in 2000 from $22.2 billion in 1999, MacLellan said. Nortel, which begins a three-week road show with analysts and institutional investors in North America and Europe on Monday, said the BCE spin-off opens the door to wider ownership which makes its stock more attractive. With an increasing share of large-scale acquisitions financed through stocks rather than cash in the communications equipment sector, Nortel will benefit from "a more powerful currency," said Bill Kerr, Nortel's senior vice president of finance and business development. The firm, which has been announcing one acquisition every quarter on average, said it will not necessarily accelerate that pace. "The most successful acquisition strategy is the one that has the most successful acquisitions, not the most acquisitions," said Kerr. Some analysts, however, suggest that BCE's stake did little to dampen Nortel's enthusiasm for acquisitions and the spin-off has negative implications. Paul Sagawa, analyst at Sanford Bernstein & Co. in New York said the spin-off exposes the stock to pressure from arbitrageurs and increases the actively traded float in the firm. "Nortel, which has been running at full speed now has a pair of heavy hands -- 10 pound weights to carry," Sagawa said of the added float. "It's not going to stop it from running, but make it harder to keep up the pace."

To: Kenneth E. Phillipps who wrote (4535)	1/27/2000 7:49:00 PM
From: Bill	Read Replies (1) \| Respond to of 14638

<<There is a list of these companies like Quantum Bridge, Alidian and Chromatis>> Well, looks like one of them made some news today: Quantum Bridge's Optical Access System Wins ComNet 2000 New Product Achievement Award; Company's Breakthrough System Receives Top Honor in the Carrier/WAN Category from Show Attendees Business Editors & High Tech Writers ComNet 2000 WASHINGTON--(BUSINESS WIRE)--Jan. 27, 2000--Quantum Bridge(TM) Communications Inc., the leader in the delivery of Optical Access Networking solutions, today announced that it has been named a winner in the highly competitive ComNet 2000 New Product Achievement sponsored by InfoWorld at the ComNet 2000 Exposition taking place in Washington D.C. this week. The Quantum Bridge Optical Access System, the industry's first affordable fiber to the business solution, received the most votes from show attendees of any product/service competing in the award's "Carrier/WAN" category. Quantum Bridge's Optical Access System, consisting of two network elements -- the QB5000 Optical Access Switch (OAS) and the QB100 Intelligent Optical Terminal (IOT) -- is designed to eliminate the bandwidth bottlenecks in the first mile of the public network between surging capacities in LAN and the exponential expansion of bandwidth capacities in the network's backbone. The Quantum Bridge Optical Access System is based on the principles of a Passive Optical Network (PON), which eliminates the need for costly electrical components in the outside plant, and arms service providers with a low-cost solution for deploying a wide range of bandwidth services to he business masses. On January 10, 2000 Quantum Bridge announced that Comcast Corporation would serve as the first beta customer of the solution. Comcast is currently testing the system in their lab. "We are very pleased to be recognized by the attendees of ComNet as the pre-eminent product offering in the Carrier/WAN category of the 'New Product Achievement Awards'," said Jeff Masucci, founder and vice president of engineering at Quantum Bridge Communications. "Our Optical Access System is a significant breakthrough in the extension of optical networking into the last mile, the final piece of the long-awaited all optical network. It is especially gratifying knowing that winning this award was decided by show attendees who, with their votes, endorsed not only our system but the also the problem we are focused on solving." "Quantum Bridge's Optical Access System is an excellent example of the type of innovation that we were trying to exemplify through the 'New Product Achievement Awards'," said Don Berey, show director of ComNet. "Their solution could finally eliminate the bottlenecks found in the first mile of today's public network." About the Quantum Bridge Optical Access System The Quantum Bridge Optical Access System can be seen today at the Quantum Bridge booth (No. 1500) at ComNet, being held at the Washington, D.C. Convention Center. The Quantum Bridge Optical Access System is comprised of two network elements, the QB5000 and the QB100 IOT. Designed for compliance with Network Equipment Building Standards (NEBS) level three standards, the QB5000 adheres to the stringent requirements of Central Office (CO) equipment. Located in the service provider CO, Point-of-Presence (POP), or head-end, the QB5000 aggregates the incoming services from hundreds of QB100 equipped businesses, located "downstream" across the PON before passing the traffic to the WAN. The QB100 IOT, located at the customer premises, delivers broadband services from 1 Mbps and 100 Mbps, to dedicated wavelengths directly to business customers. The QB100 initially supports 10/100BaseTx Ethernet and TDM, ATM and Frame Relay DS1 (T1) service interfaces, with new enterprise interfaces planned for 2000. About Quantum Bridge Communications Founded in 1998, Quantum Bridge Communications is a privately held company headquartered in North Andover, Mass., that has developed an innovative carrier-class Optical Access System designed to eliminate first mile bandwidth bottlenecks and to serve as the foundation of the e-Economy. Recently named one of the "Top Ten Companies to Watch in 2000" by Inter@ctiveWeek magazine, Quantum Bridge is comprised of a team of top talent from industry leading data communications and telecommunications companies such as Bell Laboratories/ Lucent Technologies (NYSE: LU), 3COM (Nasdaq: COMS), Bay Networks, Cabletron Systems (NYSE: CS), Newbridge Networks (NYSE:NN), Nortel Networks (NYSE: NT), and MIT Lincoln Laboratory. For more information, visit our web site at www.quantumbridge.com. Quantum Bridge and the Quantum Bridge Logo are trademarks of Quantum Bridge Communications, Inc. --30--LS/na* CONTACT: Quantum Bridge Communications Charlie Guyer, 978/688-9100 x652 cguyer@quantumbridge.com tradeshownews.com

To: Kenneth E. Phillipps who wrote (4535)	1/27/2000 9:42:00 PM
From: jack bittner	Respond to of 14638

Kenneth i believe mr Roth said one of nt's most profitable segments was access, with over 100% growth. but that's all i recall

To: Kenneth E. Phillipps who wrote (4535)	1/27/2000 10:44:00 PM
From: Techplayer	Respond to of 14638

Ken, Quantumbridge does not intend to sell. Maybe Tenor (rumor has it that they might be in play t a specific vendor), Appian, Coriolis, Sirocco or those that you mentioned. Brian

To: Kenneth E. Phillipps who wrote (4535)	1/28/2000 1:25:00 PM
From: DenverTechie	Read Replies (2) \| Respond to of 14638

Ken - please don't overlook NT's Arris Interactive access products, along with their wholly owned Digital Loop Carrier products. NT owns over 80% of the Arris Interactive LLC joint venture (the remainder is owned by ANTEC). Not only does Arris provide the killer cable telephony access product, but it also is the repository of Bay Networks, aka LANCity cable modem systems. In fact, the Arris CMTS is one of only 3 CableLabs certified CMTS (Cable Modem Termination System) on the market. One the telephone access side, it's a beautiful relationship. Those locations that don't make sense for the Arris Cornerstone cable telephone solution usually fit nicely with NT's Digital Loop Carrier (DLC) products. Technically, the Cornerstone interfaces to HFC, which has a considerable fiber component, and the DLC can interface copper or fiber. Unless you mean something totally different by access products that I'm missing?