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To: Johnny Canuck who wrote (36333)	3/5/2002 6:55:14 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70585

Juniper Won't Be Jumping Anytime Soon The network-equipment maker's assault on Cisco is on hold, at least until telecoms start buying Juniper's fancy gear again . . . VALIANT EFFORTS. Juniper has about $1 billion in cash and short-term investments to help it ride out the storm. And as its key clients get squeezed, it's making valiant efforts to expand internationally and into the wireless arena. But such sales likely won't be enough to make up for the huge revenue losses in the big-ticket, high-margin "core routers" that once made Juniper a rising star. These devices serve as electronic post offices for the Internet, managing and directing data traffic for large carriers such as Sprint and WorldCom. Just about the only carriers still buying such products are Baby Bells Verizon, BellSouth, SBC. According to Friedman Billings, the Bell trio will account for more than 60% of U.S. carrier capital spending in 2002 and 2003. But none is currently a Juniper customer. And analysts say getting any of their business will be a tough sell for Juniper. Like everyone else, the three Bells have slashed capital spending. And they're trying to make what's left go further than ever. That means reducing the number of suppliers that feed their complex networks. "At a time like this, the Bells are much more likely to expand relationships with [current suppliers] Alcatel, Lucent, and Cisco than take on a new supplier," says Marty Hyman, senior telecom partner at Booz Allen & Hamilton. WHAT'S THE HURRY? Even in the best of times, selling to the Bells isn't easy. The sales cycle is a long, slow process that can take anywhere from 18 to 24 months, analysts say. The Bells also have legacy networks that are extremely complex and difficult to manage. Any new technology has to be backward-compatible so that it integrates with older hardware and software. That means looking for a vendor that can provide soup-to-nuts service, including old-school circuit-switched routers and new moneymaking add-on services, such as virtual private networking. Another problem for Juniper is that the Bells simply aren't in any hurry to shift to the cutting-edge technology in which Juniper specializes. With their competition vanquished, the Bells are pulling back on e-business initiatives and broadband deployments. Witness SBC's decision to all but halt the rollout of Project Pronto. Announced in June, 2000, the goal of the $6 billion initiative was to make broadband available in 80% of SBC's market. Company executives claim that the delay is due to an unfavorable regulatory climate. But consultant Hyman says business fundamentals are holding the Bells back: "The profitability of broadband services isn't proven. And with the squeeze on capital, it's no longer an affordable initiative." . . . businessweek.com