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To: Boplicity who wrote (1519)	9/5/2000 12:23:09 AM
From: greggcap	Respond to of 3350

Telecom equipment suppliers critiqued in weekend Barrons. Does JNPR follow the same vendor financing practices as Cisco and Lucent? Sunday September 3 3:00 PM ET Regrets for Telecom Equipment Providers? NEW YORK (Reuters) - Telecommunications equipment makers may soon regret their practice of financing sales to customers buying their products, according to an article in the Sept. 4 edition of Barron's. The article questions the practice by Cisco Systems (NasdaqNM:CSCO - news), Ericsson (LMEb.ST), Nokia (NOK1V.HE), Nortel Networks Corp. (NYSE:NT - news), Lucent Technologies Inc.(NYSE:LU - news) and Alcatel (CGEP.PA), which help the upstart telecommunications service providers arrange bank financing. If none is found, the equipment makers sometimes take it upon themselves to help finance the purchase, the weekly newspaper said. The article questions whether telecommunications equipment manufacturers may someday have to write off some portion of their loans and commitment to make loans, which Barron's said now amounts to about $8.7 billion. The article was prompted after Lucent ran into trouble trying to sell some of the loans it extended to WinStar Communications Inc. (NasdaqNM:WCII - news) as part of a $2 billion financing package that allowed WinStar to buy equipment from Lucent, Barron's said. Lucent began offering the loans at a discount, sending WinStar's junk bonds into a slide. The sale never occurred, according to Barron's. As service providers race to build their networks, Barron's said the question now asked is where are they going to find the financing for the next big round of build outs if the equipment makers become reluctant? Answers may include selling the loans directly to junk-bond investors or selling batches of loans into the asset-backed market, Barron's said. dailynews.yahoo.com