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Technology Stocks : SONS -- Ignore unavailable to you. Want to Upgrade?

To: Cooters who wrote (362)	12/18/2005 11:39:30 AM
From: akmike	Read Replies (1) \| Respond to of 1575

Hello Cooters, I don't believe that Henderson is saying that Sonus will be paid directly on a subscriber basis. I think he is saying that unlike the circuit-switch model that had the industry installing and paying for capacity mostly upfront, the new model will be less up front (softswitch and some gateways) and more as subscriber activity increases (more softwitches and gateways + software upgrades). Thus, the installation of a much smaller cap-ex up front (T's national rollout did not ever make them a 10% customer) which will be augmented by greater and greater revenue downstream as the service provider gains subscribers and adds/changes service features. Best of luck, Mike