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

To: joe who wrote (2076)	4/30/1998 7:34:00 PM
From: gdichaz	Read Replies (1) \| Respond to of 12623

Apologies Joe, thought I was replying to Pat, so your indulgence please....To Pat: Think Qwest uses Nortel WDM built in to Nortel equip at the start. Not sure of this but my interpretation of the remark that Ciena has all the "legacy systems" means QWST will stick with Nortel. Ciena's market is elsewhere. What is your take? Chaz

To: joe who wrote (2076)	4/30/1998 10:36:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 12623

I think I was reading last night that Qwest is just installing the 2-6 channel WDM technology. They are of course building the system so that it can scale to oc-192 (pretty high Gbps!), but for now they don't need the higher bandwidth. Therefore, I think they're not using CIEN - which is what they said, right? Joe -- Nacchio made it clear they're not in Ciena's space. Ciena's market is legacy systems --- all the carriers crying for bandwidth. Qwest's is building a whole new network of which 6800 miles is lit and serviced. The remaining will be completed around May 10, except the Gulf Coast. I think he said 1600 miles would be added in two weeks. Because of the rather mild winter, the East is being completed on or ahead of schedule. With Qwest coming on like gang-busters, the carriers most likely will be pushed to upgrade more quickly than they might have. They already have the following contracts: AGIS $575M unnamed $31 M Intertel $70 M Cable and Wireless $107 M Verio (?) $100 M U.S. Gov't $400 M The contract with the US Gov't has given them credibility and now Fortune 500 companies are knocking on their door. All this means to CIEN is that the incumbents might be losing sleep and that's exactly what we want. Nacchio said they're predators and I suspect there's not a soul who's met him who doubts it. The guy runs marathons to relax. :) Later --- Pat