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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (39905)	9/15/2000 10:08:50 AM
From: telecomguy	Read Replies (1) \| Respond to of 77400

JDN, I would agree that in general you do NOT neccessarily have to own component mfg (and that is why even vertically deep NT has spun off basic assembly & mfg in their traditional PBX business). But there are EXCEPTIONS. You have to understand that when there are SHORTAGES, you cannot sub-contract to a component mfg who cannot even meet current demand from NT and LU. Right now, NT is going flat out and investing billions to build additional capacity to mfg their own laser pumps, filters, components, etc.etc. BECAUSE NT cannot get enough from JDS or Corning or ANY other supplier to meet the contractual demands of optical buildouts. WHO is NT going to sub-contract the shortages to? For CSCO v-p to say that they don't need to control their own optics component mfg only CONFIRMS that CSCO does not have any Optics business to speak of right now. (obviously reading between the lines, the Lightreading writer was trying to get at this point in an oblique fashion and Russo fell for it hook-line-&-sinker!!!) When & if NT spins off their optics business, you can be guaranteed that NT will still hold controlling interest in the new entity and ENSURE they have the first dibs on the optics components for their own Optical system buildout.