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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: john dodson who wrote (22009)	11/8/1997 12:07:00 AM
From: Jack Whitley	Read Replies (1) \| Respond to of 61433

<<WHY would AT&T divest LU, only to buy ASND now? Makes zero sense to me.>> Because they made a terrible mistake when they divested "Lucent". Their switched voice network (which we have to jack-leg data through now)looked like such a huge asset 2 1/2 years ago, now looks like a not so great asset. What they (AT&T) have left is long distance service, and it is quickly becoming a commodity. Rates will drop by another 30% in two years. They have nothing else, and some very hungry competitors, who are actually positioned better strategically in terms of data network build out than AT&T is. If they want to participate in the build out of the great IP network that will be carrying all of our voice in 5 years (and all the voice traffic on this IP network will account for 1% of the total traffic), they better buy someone. By the way, ISPs are NOT consolidating on a large scale. It doesn't really matter, ports can't consolidate. Does anyone think we will need a lot more ports going forward no matter whose roof they are under? jww