Swami...Was just surfing around and I couldn't resist...Sorry for the intrusion....
I'd like to see the action when one puts Cockwell and this fellow in the same room...;-)
Nortel Networks validated by RHK study
Nortel Networks Corp NT
Shares issued 1,421,568,571 Nov 20 close $55.10
Tue 21 Nov 2000
Mr. Anil Khatod reports
A new Internet study prepared by leading telecom analysts RHK for Nortel
Networks indicates that the demand for bandwidth from global networks could
soar 300-fold in the next eight to 10 years. The boom in bandwidth demand
will be driven by increased levels of high-speed Internet access to the
home and business, dramatically growing Internet take-up rates outside of
North America, and new disruptive technologies and applications that will
take advantage of fast and cheap access to the network, the study says.
"The current levels of investment in new networks worldwide will expand to
meet coming demand for the Optical Internet," said John Ryan, principal
analyst at RHK and chief author of the study. "The use of the Internet as a
basic tool within the global economy suggests a larger role for telecom
services and systems and revenue growth in all sectors. Clearly, the
bandwidth capacity in place today is dwarfed by what we will need in a year
or two, given the current rates of explosive growth we are seeing," Mr.
Ryan added.
The third wave
The third wave of Internet access, which is what RHK calls the adoption of
ethernet-speed access in the home and gigabit ethernet access for many
enterprises and institutions, will drive even greater demand for bandwidth.
An explosion in e-business and content management is likely to extend
today's robust Internet traffic growth rate of 200 per cent per year well
into the decade. This would take traffic to 300 times the size of today's
Internet by the decade's end, RHK observes, consistent with the traffic
growth called for by deployment of new-generation access technologies.
The RHK analysis, entitled Internet Traffic and Use: Surging Not Slowing,
points to the rapid growth in high-speed Internet access to the home --
both DSL and cable-as a key driver for surging bandwidth demand. Some
400,000 North American households per month are adopting high-speed access,
the study says. With DSL or cable modems running at some 10 times the speed
of a dial-up modem, these users add directly to demand on the Internet
backbone. In addition, other firms have recently found that high-speed
users spend 61 per cent more time on line than a year ago because the
high-speed on-line experience is far more rewarding. The explosion of
demand applies as well to enterprises where service providers are inundated
"with requests for new, high-bandwidth applications," reports the study.
RHK estimates that by July, 2001, there will be some 800 million Internet
users worldwide-up from 380 million today. Asian growth is phenomenal:
China alone is adding around 2 million Internet subscribers a month, while
Korea has two million high-speed households already hooked up.
"Trans-pacific capacity is consumed as fast as it is installed or made
available," says RHK.
Behaviour change
The RHK study argues that Internet use is likely to grow well beyond most
forecasts because the widespread availability of fast, nearly free Internet
access will lead to a change in behaviour as people modify their social,
business, and entertainment lives to enjoy new services and applications
that will be enabled by a fast, free Internet. The study cites Napster as
an example of a disruptive technology that arose from new capabilities of
the Internet. At one university studied, bandwidth consumed by Napster rose
to 27 per cent of all Internet traffic at that university -- illustrating
the potential of a new service to drive multiterabit demands for bandwidth.
"Napster went from zero to 10 million users in one year," Mr. Ryan said.
"That's an indication of the amazing power of fast, free bandwidth to alter
the way people behave. When people grow used to the fact that they can grab
a file from across the country or around the world as easily and quickly as
they can from their own hard drive, we will start to see all kinds of new
forms of behaviour that will take advantage of this bandwidth. We are just
at the start of an explosion in the use of networks."
Nortel Networks president, global Internet solutions, Anil Khatod, welcomed
the study as validation of Nortel Networks strategy, which is focused on
building a high-performance Internet with the capability to deliver maximum
bandwidth while offering new services and driving down the cost of network
ownership for service providers.
"The impressive forecasts and evidence gathered by RHK show yet again that
the explosive boom in Internet usage is unstoppable and inevitable. The
potential of the Internet is limitless-here in North America and in the
rest of the world," said Mr. Khatod. "Our challenge is to make the Internet
profitable for our customers and that's a challenge we are addressing daily
with our solutions and services that position service providers to unlock
the revenue and profit potential of the bandwidth boom."
RHK is the leading firm specializing in the analysis of advanced
technologies for the public telecommunications network. The company
provides subscription services and custom consulting to technology vendors,
service providers and the investment community in North America, Europe,
and the Asia-Pacific region. RHK's areas of expertise include: access
networks, core and edge switching and routing, emerging network
architectures, new voice infrastructure, optical components, telcom
operating systems, SONET/SDH, WDM and optical networks, and other emerging
technologies. RHK is based in South San Francisco, Calif. For more
information, please go to www.rhk.com.
(c) Copyright 2000 Canjex Publishing Ltd. stockwatch.com
...At least Cockwell sold into an up market considering he's been selling since 1997... Wonder what he's gonna do for the next ten years... Continue selling???... He's obviously gotta buy something first in order to sell it, unless of course he's selling all Brascan assets to cover his short positions...:-)))) |
