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To: Cooters who wrote (6484)	2/14/2000 4:58:00 PM
From: Ruffian	Respond to of 13582

Nortel CEO Expects To Win 25% Of City Network Market LONDON -- Nortel Networks Corp. (NT) chief executive John Roth expects his company to win and maintain a 25% share over the long term of the global city telecommunications network equipment business. In an interview with Dow Jones after the Canadian telecommunications equipment manufacturer said it will invest an additional $260 million in its optical networking and components business, Roth said such a share of the city network equipment business would contribute "significantly" to group profit. So far demand for optical networking gear has come from carriers building long-haul networks. However, Nortel, Lucent Technologies Inc. (LU), the big U.S equipment vendor, and other vendors now expect sales of optical gear for city networks to pick-up, as carriers move to look for more cost-effective ways of alleviating the traffic conjestion building up at the point where long-haul and access networks meet. A Nortel spokesman didn't have Nortel's current market share data for the metropolitan market. But the spokesman said independent research had valued the enterprise and short-haul market at about $3.5 billion by 2005. This represented a significant increase on the current value of the market. In support of the view that demand, in particular, for optical-networking equipment aimed at the metro market is poised for growth, Nortel also announced Monday a contract to supply GTE Corp. (GTE), a U.S. regional carrier which is being acquired by Bell Atlantic Corp. (BEL), another U.S. regional carrier, with its OPTera Metro system. The networking equipment which can carry up to 160 gigabits a second of traffic per strand of light, will help GTE expand its metro networks in Washington, Califorinia, Virgina and Florida. During the same interview, Roth said he was pleased about the performance of Nortel's wireless equipment business, which was gaining market share recently, after struggling for most of last year. The GSM (Global System For Mobile Communications) business was keeping pace with market growth, while the group's CDMA (Code Division Multiple Access) and TDMA (Time Division Multiple Access) equipment business were growing ahead of the market. He would not disclose individual market shares of the three businesses, nor total market growth. Roth said consolidation of the telecoms services sector was so far positive for Nortel. Although companies such as the one to be formed from this year's merger between Germany's Mannesmann AG (G.MMN) and Vodafone AirTouch PLC (VOD) could extract discounts, customer acquisition costs for Nortel were lower. He also said such mega mergers could result in the company winning more business as an acquired company converts to a new supplier. He cited the example of last year's merger between MCI WorldCom Inc. (WCOM), which was a Nortel customer and Sprint Corp. (FON), which was not. -Richard Inder 44 207 842 9279; richard.inder@dowjones.com Briefing Book for: BCE \| FON \| G.MMN \| NT \| T.BCE \| T.NT \| U.VOD \| VOD \| WCOM