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

To: Kenneth E. Phillipps who wrote (5211)	3/29/2000 8:53:00 AM
From: Paul Lee	Respond to of 14638

from wst NORTEL NETWORKS CORPORATION (NT); Brampton, Ontario, Canada ' A sell sider explains the change in atmosphere and management at Nortel Networks, headed by John A. Roth, Vice Chairman, President & CEO. 'Roth has learned to quickly adapt to the market and to understand what he needs to do. He knows how to send his message out to investors, to analysts, to the shareholders: 'Look, these are the growth opportunities. We are aggressive. We want to play in the high-end tickle, for example. We do not have the portfolio. However, we are just going to sink our money into making these the right acquisitions and into being a nimble company, not the hodgey-dodgey Bell Canada spin- off.' 'Even the atmosphere has changed quite considerably at Nortel, which has become more of a Silicon Valley-type company. The new campuses, for example, are very Silicon Valley-like. Nortel's management has also changed. They understand a lot of this is a marked difference from before, when it was very product-focused as opposed to solution- driven by the requirements of the customer. They are learning that very well. Management has made quite a bit of improvement by understanding what the market wants and where it is headed, by trying to help the customers migrate their existing networks to next-generation platforms, by doing this in a way that is not disruptive, and by selling solutions rather than hot boxes.

To: Kenneth E. Phillipps who wrote (5211)	3/29/2000 8:53:00 AM
From: Curtis E. Bemis	Read Replies (1) \| Respond to of 14638

Don't know about the "low margins" thing, but, it seems to me that the lowest margins would be when you give the stuff away. Many suppliers try that. It is incorporated in what I call the the "GRF effect". There are lessons to be learned here--be careful. I remember the sheer speed that the largest ISPs have to deploy new hardware in order to keep ahead of the traffic demands. As a result, they tend to write off such purchases in about 18 months. Have heard many state similar. So it will take about that long for a new supplier to disappear. Of those you mention, the clock is ticking for them.