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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (10524)	2/28/2001 3:51:38 PM
From: jghutchison	Respond to of 12623

Kenneth, Nortel does compete in the edge access market. Their offering is a SONET ADM which is rapidly losing market share to the CoreDirector and other optical switches while simultaneously suffering from a slowdown in spending on Sonet gear. ADM's are edge access devices. Nortel is the largest purveyor of this equipment and the market is huge. See my earlier post today regarding the RHK figures. Jack Hutchison

To: Kenneth E. Phillipps who wrote (10524)	2/28/2001 6:14:52 PM
From: Techplayer	Respond to of 12623

Kenneth, That is exactly what NT is doing and it is a mistake. NT needs to offer an end to end solution. Last year was huge for the deployment of the core. there was an optical report put out early last year by one of the brokerages that outlined their opinion that 2000 was to be the year of the core followed by the beginning of the explosion of metro access. So far, it has been on target. In some ways, it has been made more accurate by troubles in the financial markets. The carriers have to use whatever financial resources they have to get the bandwidth consumed. To do that, they have to get the newly available bandwidth to paying users. The only reason that I can see that has kept NT from pursuing an acquisition in this space is that their stock dropped from 70's-80's to sub 20. Roth actually stated when NT was at 30 that NT's valuation would keep it from acquiring additional start-ups. In the long run, that will prove costly, unfortunately. The trick now is going to be picking the right companies. Many start-ups will not find it quite so easy to pry tens of millions of dollars from the VCs without product and customers. That will force them to put out a firesale sign to tempt the big guys. Anyway, hopefully the telco spending becomes less fuzzy, the Cyras box gets delivered and NT gets a clue. tp