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

To: William E Hodal who wrote (3161)	2/8/1998 4:33:00 PM
From: pat mudge	Respond to of 18016

[Terence Matthews] Bill -- Those are two of the finest articles I've read yet. Thanks for digging them out. They confirm all that I've believed about Matthews and about NN's focus. A couple quotes that stood out: Matthews is acutely aware that he needs all of these advantages for what he sees as the ultimate battle now underway: the complete overhaul of the narrowband network. "I believe private lines and frame relay will be ripped out and ATM will be put in their place. The next stage will be the ripping out of the public switched network. Not many believe that now, but you have to be slightly mad to take on the entire world . . .." The growth of the Internet is going to drive this transformation, he notes, commenting that switches can hardly handle the current loads. "The Internet is going to collapse. The network simply can't take it. I'm not forecasting something that's not obvious." "I'm after winning the war," says Matthews. "And I do plan it out like a campaign. You have to persistently stay on track. Persistence and focus are what it's all about. . . . " If I'm right, there is a monster overhaul coming in the public switching infrastructure with all of the business services, and it's all being rolled over into the world of ATM technology. Why NN teamed with Siemens: So anything that goes in, at a minimum, has to give you what you already got. If you go home and pick up a phone and find that the dialing codes have changed, you're not going to be too pleased. It would be ridiculously disruptive. So changing the infrastructure is very complicated. It requires a core network provider, which Newbridge is not. There are only a few vendors in the world that do such things: Lucent, Northern Telecom, Alcatel, Siemens, Ericsson. These are the core network providers. So we allied with one of them. . . . Then frame relay. If you don't know frame relay and you say, "I'm into ATM." Well, ATM what? You have to connect something. The ones that made a mistake are the people that said, "ATM will go straight to the desktop." It will? There's how many million workstations out there with ethernet? You're going to get them to take out the ethernet and replace it? Are you joking? The important thing is, don't ignore the installed base. If you can go into an installed base and provide what they get today plus plus plus plus, then you're winning. . . .