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To: bambs who wrote (41711)	10/30/2000 9:14:49 AM
From: WalkAway	Respond to of 77400

I agree, it will be getting ugly.

To: bambs who wrote (41711)	10/30/2000 9:18:22 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 77400

If the customers aren't healthy then how the hell is the supplier going to do well in the coming years. The customers are not unhealthy. 90% of the spending is done by the top ten carriers. Those those top ten have good cash flow figures. They have to spend to keep up with the competition.

To: bambs who wrote (41711)	10/30/2000 9:25:35 AM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 77400

Bams - Here is an example from today's news about carrier spending. Looks like C&W is on a spending binge. Other carriers will be forced to spend to compete with C&W UPDATE 2-C&W to build $1.4 bln Japan network, challenges NTT Mon Oct 30 03:09:00 EST 2000 By Stuart Grudgings TOKYO, Oct 30 (Reuters) - Britain's Cable & Wireless Plc (C&W) said on Monday it would spend 150 billion yen ($1.4 billion) to build a high-tech fibre-optic network throughout Japan in a move to challenge the dominance of domestic giant NTT. The network, which will cater to businesses, represents the largest single investment by a British company in the Japanese telecoms industry and will be set up over the next five years, C&W said. Analysts were impressed by C&W's ambitions, but stressed that former state monopoly Nippon Telegraph and Telephone Corp (NTT) , which has nearly completed its own nationwide fibre-optic network, had a big head start. The investment, to create 1,000 jobs, marks C&W's first major step in Japan since it won a fierce takeover battle last year for control of international call operator IDC -- seen as a landmark case in the opening up of Japan's cloistered telecoms sector. C&W IDC President Stephen Pettit told reporters that C&W was aiming high in terms of market share, although he expected strong competition from NTT and other domestic carriers like the newly formed KDDI . "We intend to have a significant market share in our chosen sector which is in the business market...exactly what that is I'm not going to say," Pettit said at a news conference. Pettit said C&W would be able offer a low-cost service as the firm had already agreed a variety of supply deals with local Japanese firms, although he declined to give further details. The move is in line with C&W's aggressive expansion of Internet Protocol (IP) networks -- a technology which will eventually bring voice, Internet and data transmissions together and at much lower costs than traditional networks. In effect, it will turn telephones into computers, and vice versa. Analysts expect Japan's market for IP and data services to grow by an explosive 20 percent per year to $28 billion over the next five years, overtaking traditional voice traffic by 2003. HEAD-TO-HEAD The planned network marks the British firm's first big foray from international services into Japan's domestic telecoms market and puts it head-to-head against entrenched domestic players. Analysts said renting a network from another carrier or linking up with a firm that already had its own network may have been a safer approach. But last year's bitter fight for IDC may have ruled out major cooperation with NTT, which suffered the humiliation of losing a takeover battle in its own back yard. Several firms have complained that NTT has been putting up hurdles for other companies wanting to use its interconnection services. Telecoms analyst Kate Lye said C&W may also have been under pressure to set up its own network as businesses increasingly want a seamless network service from one company. "Corporates want end-to-end networks and C&W may have been under pressure to do that on its own," said Lye of UBS Warburg Dillon Read in Tokyo. C&W said the new network will connect around 80 cities in Japan's 47 prefectures, with special metropolitan networks planned for Tokyo and the western city of Osaka. All major business would be able to access the network, it said. The plan is also seen as strengthening Japan as C&W's strategic hub in Asia, where it plans to expand its IP services using Japan as a base. Earlier in October, C&W launched the world's most ambitious project to route telecoms traffic through IP instead of traditional switches, signing a 950 million pound ($1.4 billion) deal with Canada's Nortel Networks Corp to change its global network. ($=0.6971 pound) ($=109 yen) ragingbull.altavista.com