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

To: telecomguy who wrote (5079)	3/21/2000 12:05:00 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

I listened to part of the conference call. I understand that, at present, Nortel does not deploy a tunable laser in their system. They deploy a fixed wavelength laser which means one laser part per channel. With a tunable laser, they need only one laser part for the conventional band and one laser part for the extended band. Nortel makes a first generation tunable laser. Core-tech makes a second generation tunable laser with a very high switching speed. This is a very reliable laser. The cost savings comes from less laser parts. They will manufacture this year and sell next year. I assume, without knowing, they will sell these lasers to others. This is just my interpretation of the conference. You should listen to the audio replay for yourselves. kep

To: telecomguy who wrote (5079)	3/21/2000 8:03:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 14638

Nortel is consolidating their product portfolio alright. The big question on my mind is if they will be able to translate these pre-revenue products into real money. But with the frenetic pace of competition, Cisco is having to buy up early stage companies too, in order to compete. This is the fun part. Sitting back and watching who will dominate. I'm kind of disappointed in Lucent for having a misstep so early in the game. But they are only down, not out. So let's see what happens. PS Nice run for Cisco today. Probably pre-split euphoria along with release of steam from Fed announcement.

To: telecomguy who wrote (5079)	3/21/2000 8:42:00 PM
From: Bosco	Read Replies (1) \| Respond to of 14638

Hi tg - while NT has indeed spent a lot of resources in Optical, I think she has a deep bench to ensure that she is not a one trick pony <g>. I do believe though it is the right emphasis. Even though wireless will likely to be big, especially in places unencumbered by wireline technologies, the backbone is the core of the net. Superior technologies with lower cost translates to a greater reach of the buildout. More important, recent action has proved that NT is not sitting on her laurel of 75% of N American backbone or 32 out of 40 networks in Europe [I reckon these are old stats!] There is an idiom, if one is not moving forward, one is regressing. Unfortunately, temporarily, LU, still a great company, has demonstrated the effects. In that respect, I think investors' exuberance in NT is warranted best, Bosco

To: telecomguy who wrote (5079)	3/21/2000 10:56:00 PM
From: Jules V	Read Replies (1) \| Respond to of 14638

Re: <<<these leading optics companies are CHOOSING Nortel. Their main goal is to get their products (as their financial goal is not even in doubt) into the market place, they have bet on NT as the best company to get their technology installed. ...he who controls the backbone will have big advantages right through the rest of the network -- down to the enterprise >>> ............................................. These are all excellent points IMO. ``This was an easy decision to make,' said Dr. Tayebati. ``We went with Nortel Networks because we see them as the global leader in the Optical Internet and see this combination as the ideal way to bring our pioneering technology to the global marketplace.' "The global Optical Internet market is expected to grow from US$19.4 billion in 1999 to US$52.3 billion in 2003, a compound annual growth rate of 28%, according to Ryan Hankin Kent. " ..................... On the other hand how many $1.5-3.0B buys can you make to get into a market of this size? After nearly $8-10B buying recently, a fairly high price would seem to being paid by NT for this optical market. But they must buy thats for sure. Lots of ball team owners don't make money or go to the government for breaks, although not the Yankees I guess. And Cisco has made a career of buying companies, but how many in the past were in the multi-billions other than Stratacom (ATM?). I don't know if CSCO ever made money on Stratacom but it doesn't seem to have hurt them either. Of course since NT paid about $10B less for Bay than LU paid for Ascend, maybe they've got $$ left over. And NT did successfully integrate the Bay IP switch/router products at internet speed into their optical switches. But then LU already had a mirror product and didn't have to buy it even if its not quite as good. At twice the market cap of NT -- the market still seems to think CSCO's the biggest gorrilla here. but I'll stick with NT. 2-3 years ago the Cisco "story" was: only end to end (enterprise) vendor, router marketshare, 30-50% growth, and IOS. Have they got as dominant a new story...and is IOS still so important? Hmmm...