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

To: Jacob Snyder who wrote (57048)	12/6/2001 5:46:05 PM
From: dr_elis	Respond to of 70976

Somewhat OT: Isn´t TXN to a considerable degree a sort of telcoequip? You are however long on TXN? I am really concerned about the lack of growth in the telco sector, where all major players struggle with huge depth burdens. Similarly, LSI Logic, a company which once managed to become less dependant on the PC-related chip business, is now facing the sad realities in the telcoequip sector. Regards Michael

To: Jacob Snyder who wrote (57048)	12/7/2001 7:46:02 AM
From: Rock	Respond to of 70976

Jacob, you're pretty much right on telco-equip to telcos and I agree about 2003 as the recovery year. However, the recovery should start in 2H 2002 with the RBOC's (e.g. Verizon). They don't buy the highest value added products from the telco-equips (i.e. lower margins) but they have big build plans (metro more than long haul) and plenty of $. They'll take advantage of major price cuts on components and fiber to get their work done. For the telco-equips, this will mean solid revenue and healthy but substantially reduced margins. The bubble will not return but telco-equip will remain a very profitable business for the stronger players. You're point on WCOM and T is well made. The network builders that don't have local exchange cash monsters are in deep doo... many over their heads and never to return.