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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (7370)	10/24/2000 9:49:10 AM
From: telecomguy	Read Replies (1) \| Respond to of 14638

Without repeating all of my points, the key point you fail to understand is that CSCO is a PRODUCT company. As result, they are much more vulnerable to new companies who develop better mousetraps. And with the stratospheric valuation that new technology/R&D companies are getting, the old CSCO model of buying up any potential competitor is no longer feasible without putting huge strain on PER SHARE earnings. Certain conditions have changed in the market whereby CSCO business model is under stress. Add to the hordes of router companies nipping at CSCO's heels, CSCO decides that it has to get into the Carrier market for the core network infrastructure business. This is a very different game as it requires huge expertise, in-house engineering, years of Telco experience & legacy network experience to boot -- after all you can't MIGRATE Telcos to the next-gen network without doing pitchfork upgrade if you've never built the old "legacy" network. I hope you didn't put most of your money on CSCO since you are constantly pointing to me how stronger CSCO is positioned than NT is going forward ........... because when we started this debate, i recall NT was quite below CSCO price and where are they now? I correctly called NT's domination over LU over a year ago and I will be correct again when the valuation between CSCO and NT continues to narrow as the market finally understands the CSCO exposure and NT strength in the upcoming networking war.

To: The Phoenix who wrote (7370)	10/24/2000 10:31:58 AM
From: Lerxst	Read Replies (1) \| Respond to of 14638

Phoenix, I don't think JNPR's success solely rests on OC192, especially since their first two products, the M40 and M20, did not support OC192. Its only been since the introduction of the M160 that JNPR has an OC192 interface. Also, I agree its a fairly minor issue for Cisco to shoe-horn an OC192 interface into the GSR chassis, but that's not the real issue. How long will it take for Cisco to provide an OC192 that they can operate at line rate? Service providers are deploying OC192 in trunk applications where they will want to keep that interface running at maximum capability. JNPR's ability to operate their interfaces at or near line-rate is what I believe is largely giving JNPR their competitive advantage over Cisco. Just my $0.02, Lerxst