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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (19770)	2/1/2000 10:57:00 PM
From: JD	Respond to of 57584

LPTHA could get a big boost running into this Friday, as more attention will be focused on the "Optical Net" and its potential than ever before...thanks to AVNX IPO... MISCELLANEOUS LPTHA DD: AVNX IPO (Feb. 4th): This firm makes photonic processors that boost the performance and efficiency of optical networks. The explosion in Internet traffic has been driving the rapid expansion of optical networks. In 1999, Internet traffic was estimated at 350,000 tera bytes per month and is expected to grow to 15 million terabytes per month by 2003. In fact, 1999 Internet traffic exceeded all voice traffic. Coping with these levels of communication is a considerable challenge. Technologies such as DSL and coaxial cable relieve some of the capacity pressures, but these are interim measures that are insufficient to cope with the expected demand. Consequently, there has been a major strategic shift towards building optical networks. Given the demand for optical networks, the sector's strong valuations, strong pre-offering demand reports, and potentially solid fundamentals, we expect an extremely favorable initial reception (e.g., 100+%) followed by aftermarket appreciation. avanex.com Reuters, January 27, 2000: "Fiber optics maker Corning, Inc. says it will increase the manufacturing capacity of its Marlborough, MA factory to meet increasing market demand for photonics components." CNET News.com, January 26, 2000: "Vinrod Khosla, plenary speaker at the OFC Conference in March and a partner at Silicon Valley venture firm Kleiner, Perkins, Caufield & Byers, contends that the biggest obstacle to growth is finding enough cutting-edge equipment to put in telecommunications networks." The Miami Herald: "Trying to race to the forefront in the hotly competitive field of light-based networking, Nanovation Technologies of Miami announced Thursday an agreement to finance a $90 million research facility at Massachusetts Institute of Technology. The company is fighting to become a major force in the creation of all-optic networks that will greatly increase speed and efficiency of fiber-optic Internet connections. Corning, Lucent and Nortel, among others, also are throwing resources into the field, betting that the best technologies could result in billions of dollars of sales. Founded in 1996, Nanovation is a private company that has raised $56 million from venture capitalists in the past 12 months. Nanovation already is developing several products to speed up fiber-optic networks by using all-optic switching that will be much faster than the electrical switching that most broadband networks now use. RESEARCH PAPER - MIT Lincoln Laboratory: An Architecture for Broadband Internet Services over a WDM-based Optical Access Network - "Because of the proximity to the end-user, an access network is quite different from a backbone network and hence offers additional technology and economic challenges. The relatively low-rate individual traffic flows need to be multiplexed into the higher- rate backbone trunks, thus requiring multiplexing and grooming equipment...WDM technology has emerged as the foremost solution to high-speed transmission and is beginning to dramatically change the underlying characteristics of backbone networks. While WDM is likely to soon dominate the backbone, architectural advancements in the access environment have not kept pace with that of the network core, preventing Internet users from fully realizing the potential benefits and huge capacity of the optical technology. Theres plenty more...will post tomorrow if I have time, Jerry