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To: telecomguy who wrote (48146)	2/6/2001 2:40:19 PM
From: The Phoenix	Read Replies (1) \| Respond to of 77400

telecomguy, This optical/electronic sub-systems can fairly easily be jointly engineered. I don't see any requirement for an equipment company to own the development/manufacturing of such a sub-system no more than an equipment company needs to own the manufacturing of their products. Witness the contract manufacturing that is taking place these days. And yes, while sub-system development takes some time, once developed it is simply another module for a complete system. OG

To: telecomguy who wrote (48146)	2/6/2001 2:48:39 PM
From: Jay Couch	Read Replies (1) \| Respond to of 77400

Telecomguy, That really depends on what kinds (and speeds) of optics that you are talking about. If it's the lasers themselves, yes, IMO you can call them commodities, because there are enough players out there that the prices are driven down when the supply catches up to the demand, at least in the sub OC-48 speeds. Transceiver modules are somewhat of a different story, but even modules are being manufactured by several vendors, now. It used to be that there were only 2 or 3 vendors to buy an OC-48 transceiver module, now there are at least 10. And the prices have come down considerably. To me, that's the definition of commoditizing (sp?)... Sorry for barging into the discussion, but I couldn't let you beat up on Gary for too long! :) JC