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

To: telecomguy who wrote (4906)	2/24/2000 4:05:00 PM
From: Mr.Fun	Read Replies (2) \| Respond to of 14638

Information and opinion: Lucent announced 8 OC-192 products. One of these, the DataExpress, has been designed specifically for internet carriers. It eliminates many interfaces (eg. DS3, OC3) and capabilities (low-speed add/drop) that are unnecessary for Data only applications. As a result it is smaller (1foot high, vs. 7 feet high for NT's 10G SONET), uses less power (75% less) and is 60% cheaper. While this device is fully capable for long-haul, the demand is expected to be more metro/regional. 3 of the products are true long-haul 10Gbps add/drop muxes. A two-channel SONET add/drop and a two channel SDH add/drop are analogous to NT's current offerings, albeit with a smaller form factor and power draw. The third is a 4 channel SONET mux that offers greater reliability and disaster recovery performance, and is intended for the incumbent telco accounts. NT has no analogous product. All of these muxes have been shipping since December and will be at full production by end of March. 4 of the newly announced products are 10G versions of Lucent's bandwidth manager product, which enables customers to track and manage services across multiple DWDM systems (including those from competitors). This product is a key to Lucent's optical strategy as the management system enables end-to-end services and will extend to the optical switches/crossconnects previously announced. One of the new Bandwidth Manager products will work with undersea deployments, an area where neither LU or NT has played to date. The contracts announced in conjunction with this product introduction are representative of the market segments where LU has strength. Deutsche Telekom, British Telecom, Tele1, UPC, Beijing Telecom Authority, Metromedia Fiber - to go with previously announced NTT, ATT, Telefonica and Global Crossing. These are all HUGE optical customers - note mostly international, mostly incumbents. BTW this is unlikely to affect NT, since it, like LU is constrained by capacity, NOT demand. LU is quadrupling its capacity for bottleneck processes by CY00 end, and you know how much capacity NT is adding. The losers will be ALA, Siemens, Fujitsu, NEC, Hitachi, Marconi who will not keep their market shares if they cannot keep up with the leaders.