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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: John Soileau who wrote (10449)	3/28/2001 9:08:28 PM
From: Kenneth E. Phillipps	Respond to of 14638

China Unicom to Spend $8.5 Billion on CDMA Network, Paper Says By Michael Forsythe Beijing, March 29 (Bloomberg) -- China Unicom Ltd.'s parent plans to spend 70 billion yuan ($8.45 billion) over the next three years to build a nationwide cellular network using Qualcomm Inc. technology, the China Daily said, without citing anyone. China United Telecommunications Corp. will call for bids to supply equipment for the network using code division multiple access, or CDMA, technology, the paper said. The company will announce the winners by the end of next month. Lucent Technologies Inc., Motorola Inc., Ericsson AB, Samsung Corp. and Nortel Networks Corp. are among the foreign companies bidding for contract, the paper said. Local competitors include ZTE Corp., Huawei Technologies Co. and Datang Telecom Technology Co., it reported. ``Domestic companies will be considered first,'' the paper quoted China Unicom President Wang Jianzhou as saying. China's second-largest mobile phone company will start trials in several unidentified cities in October, the paper said. China United will spend 20 billion yuan this year to expand its CDMA network, Li Zhengmao, Unicom's executive director said on Tuesday. The network will be capable of serving 13.3 million users by the end of next year, he said. (China Daily, 3/29/01, p. 1) See {CNDY } to view the China Daily Web site.

To: John Soileau who wrote (10449)	3/29/2001 12:02:33 PM
From: Clay Takaya	Respond to of 14638

He hasn't been right in the past, why assume he starts now? I guess you just closed your ears when he made his industry call for telecom equipment mfg's last year. There he downgraded a slough of companies including CSCO and NT. IMO, his reasoning was and still is solid. The people who were buying the equipment like hotcakes are either strapped for cash (carriers such as WCOM and T) or are going out of business (the CLECs). Sure there is demand for bandwidth from the end user, but that does not necessarily mean that this is going to require the same or higher level of capex telecom spending over the next few years. Without applications such as video on demand it could be that capex will be flat or even lower over this period. Also, until someone figures out how to make money out of bandwidth carriers are going to be reluctant to rush in head first. I agree that Sagawa made a bad call on Lucent. He seems to have a blind spot there. Overall, however, he was the firstest with the mostest in the telecom call and deserves the credit for it. I can understand that the NT diehards who have lost a pile of net worth over the last year are kind of bitter about this.