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Technology Stocks : Ciena (CIEN) -- Ignore unavailable to you. Want to Upgrade?

To: joe who wrote (2040)	4/23/1998 12:55:00 PM
From: joe	Respond to of 12623

One of the things I get from the last post, is that CSCO now has a vested interest in CIEN's well-being. (Tim B.: (IMHO) I think this goes past the 'gentleman's handshake.) Also, CSCO has connections to AT&T (AT&T claims they hold no bad feelings over the network blowup a few days ago - but of course one always has to be a bit skeptical; then again, CSCO competes with Ascend in the AT&T space, and I think Ascend has had it's share of hardware/software bugs, so AT&T is stuck with the best hardware it can get. Probably CSCO's follow-up service is the determining factor in their relationship, and I trust this to be John Chambers VERY STRONG POINT. Plus, AT&T will have to look into their own house, to provide a more dependable data service - which means invest more in high-speed data transfer equipment; possibly even direct CSCO to develop new/specific products to deal with this crisis. AT&T, I think I have read, has the largest market share in the area of data services for the corporate space. Also, it's their main growth area. Another wards, just like Pat keeps saying, "this is the growth area to be in." ) Some excerpts which support the above: ''They are now viewing Lucent and Nortel as competitors,'' said Lee Doyle, an analyst at International Data Corp. in Framingham, Massachusetts. ''It doesn't make sense for us to do everything home- grown,'' he said. Cisco has investments in several small optical-networking companies, which Fraser declined to name. Also of particular note: Part of Cisco's strategy is to target the market for products ... to corporate computer-data networks and the Internet. Those products are likely to be more attractive to newer telecom service providers such as Qwest Communications International Inc., which carries more data than voice traffic, than they are to traditional long-distance phone companies like MCI Communications Corp. and Sprint Corp., Doyle said. While the amount of voice traffic has been relatively unchanged this decade, data traffic has more than doubled every year and both types of traffic frequently are carried on the same network.

To: joe who wrote (2040)	4/23/1998 1:55:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 12623

Cisco's partnership with Ciena is a clear move against Lucent, Ciena's chief rival in the WDM equipment market. Since WDM technology isn't yet standardized, telecom service providers can't use competing products in the same part of their network. That will force phone companies and Internet service providers to choose either Lucent or the Cisco-Ciena partnership to handle growing Internet traffic with WDM gear. Does this mean T can't deploy both CIEN and LU? Or does it mean they could possibly deploy one in one region and another in another? Not sure how this works. Pat