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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (43214)	3/6/2001 1:09:35 PM
From: Sam Citron	Read Replies (1) \| Respond to of 70976

I wouldn't mind taking in such a premium 10 or 20 times over the next 2 years, but I rather doubt the market would be willing to give it to me without my essentially agreeing to support AMAT inside a narrow 12% band. Given AMAT's recent trading pattern and volatility, I would be more inclined to short it here at 50+ than sell Apr 45 put at 2.75.

To: Ian@SI who wrote (43214)	3/6/2001 3:27:39 PM
From: Proud_Infidel	Respond to of 70976

DSL services to grow 901%, but capacity glut threatens equipment makers, analyst warns Semiconductor Business News (03/06/01 11:36 a.m. PST) SOUTH SAN FRANCISCO, Calif. -- The demand for consumer-oriented Digital Subscriber Line (DSL) services continues to surge, but a sudden glut of capacity is causing a major slowdown in equipment spending, according to a new report from RHK Inc. here today (March 6). The growth of residential DSL services in North America alone is projected to grow 901% over the next several years, from 2.2 million subscribers in 2000 to 18.6 million by 2004, according to RHK, a market research firm based in South San Francisco, Calif. But despite the staggering growth rates, RHK found that major carriers are beginning to curtail their procurement DSL-enabled equipment. "Equipment purchases have outdistanced the number of subscribers," said analysts Kelly Dougherty, who tracks the market for RHK Inc. "Even with the strong demand for DSL, carriers need to reckon with excess capacity," Dougherty said. "As a result, the volume of central office based equipment purchases will drop significantly, beginning in 2001." Still, the DSL market is strong in terms of growth rates in the consumer segments. The fastest growing DSL technology is asymmetrical DSL (ADSL), which will capture 50% of the residential broadband market by 2004, RHK said. Another DSL technology--symmetrical DSL (SDSL)--is projected to grow from 555,000 users in 2000 to 2.6 million users by 2004, they said. SDSL is mainly targeted for business-oriented users. ADSL is the main competitor to cable modems for residential users. By the end of 2000, broadband cable modem users numbered 5.1 million in North America, while ADSL had some 2.2 million subscribers. "Cable has previously dominated broadband because modems were deployed eighteen months earlier than ADSL technology," Dougherty said. "However, we believe that ADSL is a worthy opponent and will gain ground over the next few years." DSL carriers are extending the reach of their services. "In 2000, only 50% of homes were eligible for service," Dougherty said. "SBC's Project Pronto and other carriers' initiatives to serve customers through remote terminals will allow over 70% of homes to receive DSL by 2004."