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

To: Tom Drolet who wrote (17119)	2/17/2000 7:57:00 AM
From: Tom Drolet	Read Replies (1) \| Respond to of 18016

FYI: Out of Inside Today--E-Biz. Tom D. E-Business Winners and Losers: Next-Generation Networks E-Biz 150 February 17, 2000 After years of hype, the equipment market for digital subscriber line (DSL) technology truly emerged in 1999. SBC Communications and Bell Atlantic announced massive infrastructure rollout programs, spurred by the threat of cable-modem services for consumers as well as competition in the business arena from data-focused competitive local-exchange carriers (CLECs). Prominent among this new breed of service provider are Rhythms NetConnections, Northpoint Communications, and Covad Communications. Benefiting from this activity are makers of DSL access multiplexers (DSLAMs), such as Alcatel, Cisco Systems, Copper Mountain, and Nokia, which build and sell equipment that terminates DSL connections. In addition to laying the groundwork for DSL services, the industry is anticipating the delivery of packetized voice service over DSL connections. This reflects a larger overall communications strategy of unifying services to cut operating costs and use existing infrastructure. Key hardware vendors include Jetstream Communications, CopperCom, Efficient Networks, and TollBridge Technologies. The Internet router market finally has competition for the first time: Cisco Systems now shares the space with Juniper Networks. Both companies are enjoying strong sales growth for their respective offerings and have products deployed in operational networks. Meanwhile, large traditional telco vendors like Lucent Technologies, Siemens, and Ericsson have picked up the top router startups. They realize that data -- not voice -- equipment is what will fuel future sales growth. The windows of opportunity open and close quickly, very much favoring the incumbents. The future needs of the overall Internet router market will be dominated by two factors: ever-increasing speed and extremely stable, sophisticated value-added software. Higher speed is more dominant in the core market segment, while software is more dominant in the edge segment. The overall market requires that vendors be able to provide customer solutions in "Internet time." New entrants can get into the market by leapfrogging the competition in performance, or by offering a broad range of products (such as voice-related or Sonet multiplexers) sold as a bundle with Internet routers. This year, the core market will move from OC-48 speeds to OC-192, a fourfold increase. Cisco and Juniper are well- positioned to capture much of this market, with Lucent representing the strongest outside competitive threat. The edge market will be characterized by software-rich, highly scalable products. Best positioned are new offerings from Siemens Unisphere Solutions (through its Redstone Communications acquisition), from Nortel Networks (through its Shasta Networks acquisition), and from new entrant CoSine Communications. Cisco will maintain much of its market share, even though it lacks a state-of-the-art product. Contributors: Jennifer Pigg and Mark Lowenstein