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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: John Waddell, Ph.D who wrote (13543)	10/26/2000 8:25:28 PM
From: Apple12	Read Replies (1) \| Respond to of 24042

Six Reasons for the Bandwidth Boom As Internet usage rises, so does the demand for bandwidth. George Runkle discussed this with Nortel Networks' President of Global Internet Solutions, Mr. Anil Khatod, and explains why bandwidth must, and will, rise sharply. Email this page Format for printing Become a Fool! Related Links Nortel's Bandwidth Solution Motley Fool Research Internet Report Discussion Boards Drip Investing - The Basics Drip Investing - Companies Nortel Networks Corp. Scientific-Atlanta, Inc. Enron Corp. By George Runkle (TMF Runkle) October 25, 2000 In the past week, I had the opportunity to speak at length with Anil Khatod, president of Global Internet Solutions at Nortel Networks (NYSE: NT). We covered a lot of items, all of interest not only to Nortel, but to the future of the Internet and demand for bandwidth. I'll be covering my interview with him over several articles. This one will not deal with Nortel directly. Instead I would like to go over the future demand for bandwidth. According to Mr. Khatod, a number of items are driving the demand for bandwidth ever higher. Here are six of them that we talked about: -- High capacity is developing at the edge of the Internet. One of Mr. Khatod's statements especially made me pause and think: "Bandwidth demand will grow 100- to 200-fold in four years." I did a quick calculation, and that represents a projected 316% to 376% annualized increase in demand. All of this represents extreme growth potential for not only our Pathfinder company Nortel, but for other Pathfinder companies such as Enron (NYSE: ENE) that will help distribute the supply and demand with bandwidth trading, and Scientific-Atlanta (NYSE: SFA) that will provide the access speed to users at the edge. Given all this, the news that Nortel will miss revenue numbers due to a slowdown in customer spending is surprising, but likely it's a case of too much expectation in the near term. The bandwidth buildout will occur over several years, and it will likely occur slower than many people expect, but it will still represent a high-growth industry. People have been saying for a few years that soon cable Internet would be everywhere. Well, it isn't. It takes time. The same will be true for fiber optics and for all bandwidth. The opportunities are long term.