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Technology Stocks : Tellium -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (25)	9/14/2000 5:48:14 PM
From: Johnny Canuck	Respond to of 55

I think everyone is still waiting for the IPO announcement. The market is getting more and more competitive. It is more than just optical switches right now. It is the software that manages them too than makes the sale and create eventual value. It will intereting to see Tellium strategy from the network management side.

To: James Fulop who wrote (25)	9/18/2000 10:27:28 PM
From: D. K. G.	Respond to of 55

Tellium Deals Gear To Cable And Wireless forbes.com By Kathleen Cholewka NEW YORK. 1:10 PM EDT-Optical networking startup Tellium signed a hefty $350 million deal to supply gear to high-profile telco Cable and Wireless. The deal proves Oceanport, N.J.-based Tellium is a significant threat to competing optical networking equipment suppliers like Nortel Networks and Cisco Systems. But winning the Cable and Wireless account could also mean Tellium will become an attractive buyout target for those same suppliers. Cisco (nasdaq: CSCO) and Lucent (nyse: LU) are among its investors. The Cable and Wireless crew reviewed nine different vendors and found Tellium to be a technologically perfect match in terms of features. "We feel that they are the leaders in this arena. They have the best products," says Wesley Ford, senior director of transmission engineering at Cable and Wireless. In terms of size or product capacity, Ford says Tellium is ahead of the pack. The box is capable of shunting 1.28 terabits of traffic. That means someone could send the Library of Congress, the equivalent of ten terabits of data, in less than ten seconds, says telecom research firm Ryan Hankin Kent. By comparison, the Internet's fastest pipes can transmit 2.45 gigabits per second. But technology isn't all that matters. Tellium's management team, which includes veterans of Lucent, Fujitsu, AT&T (nyse: T) and Bell Atlantic (nyse: BEL), and its engineers were a convincing factor. "Equally weighted was from the soft side: Their engineers had good chemistry with ours," Ford says. Cable and Wireless had such faith, or need, for Tellium's gear it agreed to buy the equipment without financing. Tellium's competition, which includes Ciena (nasdaq: CIEN), Lucent and Sycamore Networks (nasdaq: SCMR), should take the deal as a warning. Service providers are experiencing huge demand for bandwidth from their own customers, who may not be so loyal to their traditional suppliers. Before companies like Nortel (nyse: NT), whose competing optical products will be available in the fourth quarter of 2001, and Cisco get their products to market, startups like Tellium are threatening to take over the market. The deal shows that no matter what the brand name, the first-mover advantage is key. "It gives us credibility and gets us attention," says Harry Carr, Tellium's chief executive officer. Tellium is racking up business. It signed another contract with Dynagy, an energy provider, which like Enron (nyse: ENE) is moving into the communications industry, building out a network. The company signed up for $250 million in gear. Mind you, Tellium is not a one-stop shop. They focus on optical switching only, as opposed to selling entire lines of optical networking gear. Naturally, that focus could force Tellium into an acquisition-target position. Carr insists his company is not for sale, yet remains realistic. "There's some price out there where we'd think about it," Carr says. ====== James, you are not alone, it's just that you post the goods before I ever got a chance to. regards, dkg