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

To: Dennis R. Duke who wrote (40528)	3/23/1998 1:00:00 AM
From: Jack Whitley	Read Replies (2) \| Respond to of 61433

<<I have said before that I believe that ASND will go it alone. They are building internal systems for up to $5 billion in sales (4x plus current size), and are planning to complete these systems by end of Q4 this year. Why would they build systems, only to be blended into the acquiror systems?>> I have seen information, which I would classify as very reliable, that network traffic at WCOM-UUnet is increasing at a rate of 10 times per year. Over the course of the next 3 years this would be an increase of 10 to the 3rd power, or a 1000 fold increase just for WCOM. Even with WDM as a bandwidth expander of existing compliant fiber, it appears switching will be needed. Though RAC seems to be going in the dumper for ASND, if the ATM switches are valued by the carriers, the potential looks good. Also, could any of the bright technical people on this board (networking technical, not stock analysis technical) opine on the "routing at layer 2 vs. switching at layer 3" issue. If layer 3 wins out, would this not be a boon to ASND ? (Lucent's Portmaster announcement not withstanding) jww