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Technology Stocks : ANTEC Corp. (ANTC) -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (603)	9/5/2000 11:03:35 AM
From: Return to Sender	Respond to of 847

I'm in this morning at 34 1/4. Technically I believe that ANTC can rise to about 47 in the next couple of weeks. Without any fundamental changes in the company this price is just too good for me to pass up. RTS

To: Arthur Tang who wrote (603)	9/5/2000 4:32:54 PM
From: MikeM54321	Read Replies (2) \| Respond to of 847

Arthur and Thread- I don't consider the title of the following article that accurate. And if it's such a hot deal NT is missing out on, then why in the world is NT's valuation in the stratosphere, while ANTC is is below sea level?<g> IMO, it's a win-win deal for both companies. ANTC gets the circuit-switched cable telephony business, and NT gets the big circuit-switch business in the headend. It really plays into each other's specialties. ANTC on the MSO side and NT on the PSTN side. -MikeM(From Florida) _____________________________________ NORTEL'S CABLE CONUNDRUM Telecom Titan Hampered by ANTEC Channel Agreement in U.S. Cable Market SEPTEMBER 01, 2000 Six years ago, when U.S. cable operators initially began trumpeting plans to offer competitive local telephone service over their hybrid fiber/coaxial (HFC) networks, equipment giants Northern Telecom and Lucent Technologies quickly began developing cable telephony platforms. While Lucent soon abandoned its product, Nortel persevered, and its cable telephony technology is now the most widely deployed. In an interesting twist of fate, though, Nortel has been unable to realize the full value of its foresight due to a disadvantageous business deal with ANTEC Corp. While Nortel originally viewed cable telephony as an unattractive, low-margin business in its own right, the company believed the products could be used to expand sales of its high-profit telecom switches into a new market segment. In 1994 Nortel tapped Electronic System Products (ESP) and Bell Northern Research (BNR), to develop a cable telephony protocol and transmission system that was later named Cornerstone. Shortly thereafter, EPS was acquired by ANTEC. Nortel formed a joint venture with ANTEC, called Arris Interactive, in 1996. Nortel originally controlled 75 percent of Arris with ANTEC owning the remaining 25 percent. In exchange for its larger equity stake, Nortel accepted a provision that ultimately proved problematic: it provided ANTEC with exclusive rights to sell Nortel and Arris cable products to top U.S. MSOs, a group that now controls more than 90 percent of American cable homes. Nortel is able to sell cable products to some small U.S. operators and those in international markets. For its part, Nortel has indeed been able to leverage Cornerstone to sell telephone switches to MSOs, executing on its original game plan. The problem is, the game has changed dramatically since that plan was conceived. The situation has created a conundrum for Nortel. The company has leading optical, IP telecom, operations support system (OSS) and integration solutions that could gain traction in the U.S. cable market, but due to ANTEC's exclusive sales rights for access equipment, Nortel cannot deliver a seamless cable offering.