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Technology Stocks : Corning Incorporated (GLW) -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (967)	10/17/2000 8:03:48 PM
From: J Fieb	Respond to of 2260

A billion here. abillion there and pretty soon it adds up to real money.... Nortel scores $1 billion optical deal (UPDATE: In U.S. dollars unless noted. Adds comment from analyst, Nortel executive, background throughout.) By Susan Taylor OTTAWA, Oct 17 (Reuters) - Nortel Networks Corp. (NYSE:NT - news) (Toronto:NT.TO - news) the world's No. 2 telecoms network equipment supplier, said on Tuesday that it has struck a four-year, $1 billion optical equipment and services deal for Aerie Networks' 32,000-kilometre (20,000-mile) U.S. broadband network. The agreement, one of Nortel's 10 largest contract wins ever, is still subject to definitive financing agreements. Nortel said it expects to supply financing of no more than 50 percent of the contract value at any one time. ``What Nortel is saying is they're not fully financing this thing and that's an indication of strength, not weakness,'' said Alex Henderson, an analyst at Salomon Smith Barney. ``There's a lot of market jitters on this stuff and...there's been instances where people have financed over 100 percent of the capital of the equipment being bought, and that's a way of cutting price.'' Nortel said it is the exclusive supplier of electronics for the network, with the bulk of the contract value represented by equipment and a minority by services. Denver-based Aerie Networks plans to offer network services to 194 U.S. cities along more than 14.2 million kilometres (8.9 million miles) of fiber, which represents 432 fibers running along the 32,000-km (20,000-mile) network. Aerie will sell network bandwidth and services to carriers, service providers, and local access and metropolitan area network providers. Optical fiber supplier Corning Inc. (NYSE:GLW - news) said in June it had won a supply deal worth more than $1 billion to sell fiber to Aerie. Aerie Networks, founded last year, will begin laying conduit later this summer and expects to complete its network in 2004. It has assembled nearly 24,000 km (15,000 miles) of right-of-way along the pipelines of 12 energy and communications companies, which are investors in the company. ``This is one of the most extensive networks,'' said Anil Khatod, Nortel president of global Internet services. ``You are looking at absolutely awesome capacity -- it can be deployed extremely cost effectively when you look at a large amount of bandwidth.'' ($1 equals $1.52 Canadian)