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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (36863)	12/20/2000 10:33:59 PM
From: Judith Williams	Read Replies (1) \| Respond to of 54805

Dale-- is the [NT/GLW] for photonic components alone? Yes. The deal would have spun off GLW and NT's components divisions into an independent (I think) entity, but obviously not fiber itself since LEAF is such a money-maker. It fell apart apparently because GLW concluded it would have to sacrifice too much independence. Right now, GLW's components unit is not profitable, due to heavy investment, but it generates about 1/8 of GLW's top line revenues and has obvious synergies with the fiber production side. I didn't check NT carefully, but the $3B analysts batted around seems right. NG had considerably lower operating costs compared with older systems Bingo. Not only are they more efficient--no doubling up, etc.--but they require less provisioning and upkeep as well as fewer parts. But the real cost/benefit is in the carry capacity so costs can be amortized over greater traffic. The whole thrust behind the NG systems, whether the systems vendors or the merchant components suppliers, is that they must reduce costs for the carriers and create opportunities for them to attract more revenue--ie, customers or additional services. Thanks for the link--missed it and it has terrific illustrations. --Judith