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

To: Glenn D. Rudolph who wrote (25091)	12/1/1997 8:35:00 PM
From: Pullin-GS	Read Replies (1) \| Respond to of 61433

CSCO also obtained the hubs/router share on their own. Actually the hub line (and switch) evolved initially from aquisitions. This would include Lighstream, and the current catalyst line (I can't remember the switch vendor at the moment). The firewall product line also evolved from initial purchases of entire companies. Some of the management products were influenced by acquistions as well. Regards, Paul

To: Glenn D. Rudolph who wrote (25091)	12/2/1997 12:35:00 AM
From: sepku	Respond to of 61433

>>>I would agree with you. However, MSFT did not do a marger nor did INTC to get their market share. CSCO also obtained the hubs/router share on their own. The aquisitions were for other products.<<< I understand what you are saying, but such an attitude from the DOJ would imply that they consider majority market share leadership via merger/aquisition is "cheating". There is enormous competition out there, especially in the form of CSCO which would still dwarf a combo in the form of ASND/COMS. Then there are the startups, I believe I read somewhere that 30+ new networking companies have entered the field...any one of which could dramatically alter the technological landscape with a breakthrough and rock the RA market. Then there is CPQ, INTC, the telco equip. providers. I just cannot see how a 60% market share dominance in the still relatively mediocre RA market could possibly warrant DOJ intervention (for 1997 the total RA market value was around $3 -- 4 billion, right?). For example...look at the extreme example of the BA/MD merger 6 months ago. Enormous barrier to market entry for any new player. Combined commercial aircraft market share of 70% (not including the lucrative military and space businesses). Only one remaining competitor in commercial aircraft. I had MD at the time, so I'm very pleased with this development...however, I admit that if any merger needed thorough review, it was this one. Granted, politics played a huge role, but when you compare this extreme dodging the bullet to a hypothetical merger resulting in majority market share in a single niche of a sector, RA, in such a highly competitive industry such as networking, I cannot see where the obstacle lies. Also bear in mind that monopolies are not illegal, as long as unfair methods are not employed to limit the competition (MSFT requiring box-makers to exclude Netscape Navigator in favor of MSIE lest they not receive Windows 95 OS...like what are they supposed to ship their PCs with, DOS?!). Style Pts.