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

To: Bosco who wrote (9091)	12/21/2000 10:00:51 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

The World's A 3G Stage Nortel Shares With Competition Dec. 21, 2000 (CT Wireless, Vol. 4, No. 245 via COMTEX) -- By Malcolm Spicer, mspicer@phillips.com Nortel Networks [NT] would be delighted to supply all parts of third- generation networks for its customers, but the company still exceeded its goal for 3G contracts this year by sharing the stage with other vendors in most of the contracts. Nortel announced today it reached the $2.1 billion mark in contracts for 3G work during 2000 - thanks to $320 million agreement to provide Internet protocol backbone equipment for the wideband CDMA network Deutsche Telekom's [DT] wireless unit, T-Mobile International, plans to build in Germany, Austria and Switzerland. As in most of Nortel's other 3G projects, the vendor working with a competitor for the T-Mobile deal. Nokia [NOK] will provide the base stations for T-Mobile's network. Nortel and Nokia will both be paid $320 million for their respective work on T-Mobile, the companies said. Mark Tharby, Nortel's vice president of wireless Internet marketing, said the company expects to have 25 percent of the market for 3G network projects by 2003. The $2.1 billion worth of 3G contracts Nortel signed this year exceeds its projections and puts the company on track to actually reach this 2003 goal, he told Wireless Today. "Next year we will se the remainder of Europe commit to 3G contracts," Tharby said. "We'll certainly see [Nortel's 3G contracts] much higher than $2 billion." A big chunk of Nortel's 3G total this year came from its $780 million agreement to provide the IP backbone and the network of base stations for British Telecom's [BTY] BT Cellnet mobile operation. Nortel's other 3G projects, for Airtel Movil and Xfera in Spain and for ATT Wireless [AWE] in the United States, are in conjunction with other vendors. Tharby said being hired as the sole 3G vendor for BT Cellnet's project was largely a result of that carrier being one of the first to make a 3G decision. "We certainly recommend to our operators to take a real hard look at a single-vendor strategy," he said. The Bottom Line Getting vendors to admit their products are lumped with other companies' offerings within a wireless network is like pulling teeth. But even though they must share clients, Nortel, Nokia and their brethren should continue smiling as the wireless world gets ready to make more 3G deployments. Each time a vendor casts its net for a network equipment contract, it could pull in an impressive catch - even with just part of a contract. Once in a while a trophy catch will be landed in a single-vendor deal, but there are plenty of multi-vendor agreements to keep these fishermen well fed. -0- Copyright Phillips Publishing, Inc. lada.zacks.com