Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (6577)	6/17/2003 7:43:09 PM
From: Stephen L	Respond to of 46821

But the lightreading chatter continues... JUNE 17, 2003 PREVIOUS NEWS ANALYSIS More Missives on AT&T's Long Haul -------------------------------------------------------------------------------- Another firm has weighed in on the fate of AT&T Corp.'s (NYSE: T - message board) long-haul network upgrade. A research note from analyst firm RHK Inc., obtained by Light Reading, suggests that Siemens AG (NYSE: SI - message board; Frankfurt: SIE) did win the whole lot of AT&T's long-haul DWDM business. This potential contract from AT&T -- probably the largest purchasers of DWDM gear in North America -- has long been closely watched. So far, it's dashed startup hopes and frustrated many (see AT&T DWDM Hope Dwindles and Corvis Deletes Message Poster ). For its part, AT&T has already dismissed the Siemens chatter as "rumor," though it didn't go so far as to deny that some sort of deal was in place (see AT&T Smacks Siemens Rumor ). RHK says Siemens has nailed down the deal in exchange for some of its telecom services. "The real surprise was that AT&T has selected Siemens for its ultra-long-haul (ULH) project -- setting aside the rumored selection of Ciena Corp. (Nasdaq: CIEN - message board), Corvis Corp. (Nasdaq: CORV - message board), or Lucent Technologies Inc. (NYSE: LU - message board)," wrote RHK's analysts less than a week ago. The note suggests that the real winner of the deal is AT&T. "AT&T will receive a steady revenue stream from Siemens, as the German firm moves its global telecom and network services to AT&T, and AT&T gets low-cost pricing for next-generation ULH gear." Previously several Wall Street analysts close to the long-haul equipment vendors said that AT&T did give some kind of nod to Siemens in the long-haul space, but that it hadn't made a decision regarding its much broader long-haul network upgrade. At this point, RHK seems to be the only firm saying there was only one AT&T long-haul deal and Siemens won it all. "An interesting data point we learned was that the oft-talked about AT&T ultra long-haul DWDM contract has not yet been awarded, and in fact, has not entered trials," wrote J.P. Morgan Chase Bank & Co. analyst Ehud Gelblum in a June 4 note to clients. "It will be at least 9-12 months before a contract is awarded." In emails to Light Reading Gelblum adds that the anticipated contract is low-margin, thanks to the pricing pressure AT&T is applying to vendors, and that the whole deal is expected to be worth between $50 million and $100 million.