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Technology Stocks : General Instrument Corp.'98 (GIC) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brew who wrote (120)	3/12/1998 3:46:00 PM
From: John F. Dowd	Read Replies (2) \| Respond to of 615

Dear All: I am not sure why this stock has dogged out as they are the lynch pin manufacturer of digital set top boxes. Just because XDSL is getting some good publicity does not mean the cable industry is going to surrender to Ma Bell. Actually the competition is going to be great for everybody especially the investors. Up until now all the wire monopolies were sitting fat dumb and happy but now they are scared of losing their respective fiefdoms to the the Lord of the other media. Ma Bell wants to do video over the twisted pair from the cabinet to the home and Cable wants to offer at least the net plus a little more interactive TV to protect their turf. Fear they say is a greater motivator than greed and in the end both the cable and tel. cos. will be ordering a lot of boxes and SDL equipment to protect their markets. This is finally the competition that was supposed to happen when they broke up the bells. What the judge didn't see in that case was that it takes at least 2 sets of wires for competition to arise. With the threat of convergence the cable and twisted pair become more identical with every day and so if each industry wants to keep their market they will have to buy whatever techno - gagdgets it takes to keep them in the lead. Indeed the race is on and both sides of the coin - cable and twisted pair terminator manufacturers will be the winners. GIC has to learn how to make money building their boxes - that is their real problem. I have invested pretty heavily on both sides so yes I have put my money where my mouth is. I am just a little nervous that the rest of the street doesn't quite see it that way today. What am I missing? Good Luck, JF Dowd