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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Rich1 who wrote (47266)	7/30/2000 12:02:01 PM
From: The Phoenix	Read Replies (2) \| Respond to of 63513

Nortel has shown no ability to execute. People fail to recognize that NT has been playing in the optics space for years and the market fortunately came right to them. Still optical transport is a "dumb" technology - it is not service oriented and eventually will become a commodity. Today prices are at a premium because demand is outstripping supply. That's why optics is where to be right now - because of supply constraints. Once these are alleviated (which will begin to occur in the next 12 months) prices will come into line and NT's top line growth will slow dramatically. This coupled with new entrants and CSCO and LU catching up I suspect NT will have a tought road. NT's business is a funtion of how the optics market goes. They are singularly focused. Their circuit switch business is going away, they've shown no ability to penetrate the data/IP market, and every acquistion they've done has had zero success.. ragingbull.altavista.com So, one invests in NT to take advantage of the optical market and the supply demand constraints that exist. Optical transport will become commoditized - it's just bandwidth - but the win is in service delivery. One thing to watch is to see who get's the lions share in the metro optical market just begining to develop. If NT can make some hay here they could run for a bit longer. OG