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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Anonymous who wrote (17583)	2/7/2001 4:15:20 AM
From: elmatador	Respond to of 21876

This will help LU: Freed -in the US- from spending in ADSL, (http://www.siliconinvestor.com/readmsg.aspx?msgid=15311237) ILECS go investing abroad: Sprint starts its crawl to Europe, Asia Verizon to spend $1 billion on network See, please the news below. Elmat's comments: That's very good for the telecoms business as a whole, where we will not see good money going behind dead technology. Possibly, those ILEcs bring its suppliers from North America and will help boost LU, NT etc. Under this perspective 'Little Powell' is right in his decision. Verizon to spend $1 billion on network By Bloomberg News February 6, 2001, 4:25 p.m. PT Verizon Communications plans to assemble and operate a global communications network using cables owned by Flag Telecom Holdings and Metromedia Fiber Network, companies in which Verizon owns stakes. Getting the network up and running will cost $1 billion over five years, said Thomas Bartlett, president of Verizon's Global Solutions unit. New York-based Verizon already has incorporated this investment into its 2001 and 2002 financial guidance, he said. The largest U.S. local telephone company expects to save at least $300 million over five years because it won't have to lease lines from other carriers to carry traffic outside the United States. The first leg of the project, carrying voice and data from New York to London, Paris, Amsterdam, Brussels, Frankfurt and Milan, is expected to begin service by the second quarter, Verizon said. Eventually, the network will serve 25 to 30 key business centers around the globe. Sprint starts its crawl to Europe, Asia By Ben Charny Special to CNET News.com February 6, 2001, 2:35 p.m. PT Sprint's on-again-off-again European and Asian adventure is back on. The company announced Tuesday it plans to build its own Internet backbone so it can launch Sprint services in 35 different countries in Asia and Europe by 2003. The company already has a small presence in London and 14 other international locations. Using that as a base, it hopes to expand into key European and Asian markets in France, Germany, Holland, Italy, Sweden, Japan and China, company executives said. Sprint may have the most ambitious plans yet of any American carrier to invade the fickle European and Asian Internet marketplace. Companies such as AT&T and Qwest Communications International have already established beachheads, but through partnerships rather than a solo presence as Sprint apparently plans. Sprint's pending expansion had been expected for some time and didn't come soon enough for some analysts. Sprint had been part of Global One, a partnership with Deutsche Telekom and France Telecom. But Sprint pulled out of that agreement after it announced plans to merge with WorldCom. But then those merger plans fell through because of regulatory problems, leaving Sprint with no international presence or plans. "They really had no choice. They had to put together something of an international plan," said David Neil, vice president of network services for the Gartner Group. " I would have liked to have seen them do it sooner than this." Regardless of the timing, Sprint is about to get into a market that is so crowded that some European ISPs are already facing the same type of market pressures that have slowed most technology industries in the United States, said Lars Godel, a Forrester Research telecom analyst in Amsterdam. "It will still be tough, whether they build their own network or not," he said. "It'll be good for the users though. It'll give them more choice." But the two analysts did applaud Sprint's expansion method. European and Asian markets are already experiencing a glut of bandwidth availability. Sprint apparently plans to lease some of this "dark fiber"--an industry term for fiber-optic cable that is already built but not being used--and build Internet relay devices on top of that, the analysts said. "Right now, there is an oversupply of network facilities in Europe," Neil said. "Network cost is really quite cheap because of the oversupply." Sprint is also banking on two other construction projects. Sprint says it partially owns most of the major public undersea cable systems and two under construction right now. The expansion plans were made public less than a week after the No. 3 U.S. telephone service provider unveiled a bad fourth-quarter report and a dim forecast for 2001. Last week, the Westwood, Kan., company lowered its previous 2001 earnings forecast by 10 cents a share. It also reported that its fourth-quarter profits fell 77 percent.