To: bob zagorin who wrote (18072 ) 2/8/2001 2:55:14 PM From: pat mudge Read Replies (1) | Respond to Bob --Strong increases in spending on data/broadband networking and access. Driven by 30% revenue growth rates, spending on broadband and data networking gear is expected to increase 20% in 2000 to $4.7 billion. The bulk of this will likely be spent on current technologies such as DSL, optical networking, Frame Relay/ATM switching and IP routing gear. Spending on voice is expected to be down slightly but is still a huge number at $5.5 billion. Strong DSL subscriber growth. Verizon set a DSL subscriber target of 1.2-1.3 million for the end of 2001 versus 540,000 (original target 500,000) exiting 2000. This target, which we believe is conservative, translates into about 700,000 net adds for the year or more than a 50% increase. The Company also noted operational improvements in provisioning and customer services, which we believe could drive upside to the subscriber target.Verizon noted plans to begin investing in a number of new networking technologies in 2001, including OC-192 SONET and DWDM optical transport systems, voice over ATM technology for circuit switch replacement, remote terminal-based DSL technology and next generation optical cross connects. Verizon also noted a potpourri of technologies in the trial and evaluation stage, including voice and video over DSL, broadband fixed wireless, all optical/wavelength services, softswitch technology and advanced IP services.
