SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?


To: djane who wrote (47629)5/28/1998 5:12:00 AM
From: djane  Respond to of 61433
 
Nice IBD article on British Telecom roll-out of ASND RA equipment

British Telecom Experiments On Itself To
Hawk Networks

Date: 5/28/98
Author: Michele Hostetler

British Telecom PLC hopes that practicing
what it preaches will sell the public on a
network that plugs far-flung workers into the
company's computer system.

The London-based telecommunications titan
has been rolling out a remote- access system
for itself this year that it's co-producing with
networking firm Ascend Communications Inc.
It's one of the biggest corporate
remote-access projects in the U.K., costing
more than $1.5 million in just the embryonic
stages.


By using itself as a high-profile guinea pig,
British Telecom plans to market systems that
make it possible for a worker armed with
only a cellular phone and laptop computer to
hook up to the company network.

''Sell what you use and use what you sell,''
said Leo Hughes, British Telecom technology
manager of the remote- access project.

Remote access is one of the fastest-growing
segments of networking. Companies
increasingly demand this ability, and British
Telecom recognizes this - even though it
doesn't make remote-access hardware.

That's where Alameda, Calif.-based Ascend
comes in. Ascend is making the equipment
that British Telecom plans to sell to
corporations, and is relying on its U.K.
partner to market overseas.

Whatever success British Telecom enjoys
should rub off on Ascend and net it more
sales, says Phil Holcroft, Ascend's U.K.
business manager.


British Telecom has connected 12,500 of its
own employees in the past six months to its
new system and plans to wire in another
10,000 by year's end. In two years, 30,000
of the company's 120,000 employees will
plug into the corporate network from afar.
Many more employees are clamoring to get
hooked up, Hughes says.

''Success sells itself,'' Hughes said. The key
issue is not to be able to control demand . . .
but to have the resources as demand
increases.''

The project has squeezed out more
productivity from British Telecom employees,
Hughes says. Field engineers can use a
mobile computer and cellular phone to dial
into the main network and find out what the
next job is. They also can access detailed
information normally found only in the office.

In setting up its own system, British Telecom
had to learn a few lessons along the way. It
did manage, however, to lay groundwork in
advance that avoided many more pitfalls.

British Telecom first defined remote-access
benefits and what it wanted its system to do.
It also set realistic expectations.

The hard part came next. British Telecom
already had some remote-access equipment
in place to link several electronic-mail
systems. But those systems were of various
degrees of security and technology types,
Hughes says.

British Telecom sought to unite the disparate
systems while making them secure and
flexible, he says. There were two stages to
the first phase of the project - planning the
system and a pilot program. The process
began in the summer of '96.

British Telecom conducted test trials for six
months with Ascend's equipment, says Ian
Yeadon, manager of the company's
remote-access project.


One problem arose in putting remote-access
technology on top of existing software and
e-mail systems, which weren't linked, Hughes
says. The e- mail systems were
local-area-network based and tough to make
secure.

There was trouble on the PC side of things,
too, as the operating system became a
stumbling block. The company debated over
upgrading a number of its machines from
Windows 3.11 to Windows 95, but that
would have involved numerous hardware
improvements and logistics headaches,
Hughes says.

Still, the company needed to unify all its
computers in order to save time, Yeadon
says. Tossing the PCs wasn't an option, so
they had to upgrade.

British Telecom's remote-access program has
four sites in the U.K. where it houses
equipment.

Fifty Ascend MAX 4000 switches at those
sites connect users to British Telecom's
intranet. The two companies already are
working together to update and expand the
existing system, Yeadon says.

Working closely with an equipment supplier is
essential to a remote-access project's
success, he says.


''At the end of the day, what we're trying to
do, you couldn't buy off the shelf,'' Yeadon
said.

The $1.5 million British Telecom has spent
thus far went to upgrading the backbone
equipment over the last two years, he says.

Related costs, such as more laptops and
desktops, are budgeted by separate
departments, Yeadon says. However, the
company ended up buying several thousand
new laptops to hook up to the new system.

British Telecom is looking into contracting
with a supplier to make specially designed
laptops and desktops to connect to the
remote-access system, Hughes says.

The next step is to link British Telecom's
expanding international presence to its home
base. Safeguarding the system for workers
spread across Europe is one challenge,
Yeadon says.

There isn't a unified telephone system in
Europe, so British Telecom has to overcome
that hurdle, Yeadon says. Virtual private
networks, which use public networks but
keep private information secure, could be an
answer, he says.
[Another nice opportunity for ASND]

''We've got security more or less cracked in
the U.K.,'' he said. ''But internationally we
have to make sure we've got that high degree
of security.''

(C) Copyright 1998 Investors Business Daily,
Inc.
Metadata: BTY ASND I/4811 I/3574 E/IBD E/SN1
E/TECH



To: djane who wrote (47629)5/28/1998 5:23:00 AM
From: djane  Respond to of 61433
 
AT&T Eyes Power Utilities As Allies In Local Access Push

totaltele.com

By Colleen McElroy for Bloomberg News

27-MAY-98

AT&T President John Zeglis will speak to electric utility
executives next week about opening competition in the $100
billion US local phone market.
The executive of the largest US phone company will speak at
the Edison Electric Institute convention in Chicago, where
industry executives including Southern Co. Chief Executive A.W.
Dahlberg and Houston Industries Inc. Chief Executive Don
Jordan are scheduled to attend.
Utilities, which are allowed to enter the phone business
because of the 1996 Telecommunications Act, may be potential
allies for AT&T. Power companies have laid fiber-optic cables
throughout the US that AT&T could use to gain access to tens
of millions of US homes, while utility companies could gain
additional revenue from leasing space on their cables to AT&T.
"They don't know anything about the (phone) business,"
said Edward Tirello, an analyst with BT Alex Brown. "Some
(utilities) are dabbling in it to gain experience."
AT&T is looking for avenues to break into the local phone
market. The company has spent $3.4 billion on providing local
phone services and lost hundreds of millions of dollars.
Zeglis' "comments are going to be about opening up the local
telephone market to competition," said AT&T spokeswoman
Ruthlyn Newell. She declined to be more specific.

Information : info@total.emap.com
URL : totaltele.com



To: djane who wrote (47629)5/28/1998 5:25:00 AM
From: djane  Read Replies (1) | Respond to of 61433
 
Bearish MF thread view on ASND intl growth

boards.fool.com


Number: of 476
Author: Digerati
Date: 5/27/98 4:56:27 PM (ET)

-----
Sorry, I never really focused on the 10-Q. The last statement is interesting, but is not necessarily
contradictory to statements made during the last conference call or at some of the recent
conferences
(H&Q and BARS). Summaries of these conversations appear in various posts on the SI thread.
But the
summary data points include:

- Increases in international sales, both in absolute terms and as a percentage of sales. This was
definitely in the last quarter, but I think was also the case comparing Q4 '97 to Q3 '97 (won't swear
to
the latter, though).
-----

But the 10-K talks about the last quarter, as discussed on the last conference call! Although 10-Ks
never tell the whole story (Generally Abused Accounting Principles being what they are), flat-out
contradiction of management statements in the 10-K is a little hard to swallow.

Given the choice between a thread on Silicon Investor and the 10-K, I'll choose to believe the
10-K :-)

-----
But it's relevant because ASND reportedly sees much of their growth
coming from abroad. One report estimated their international sales as 40% of total sales as soon as
1999! So if you are hearing that they are not making any progress in the international arena, I'd
really
like to know.
-----

Well, we all know that Asia is not going to be the growth market for this coming year. That
basically leaves Europe as the only other significant non-Americas market. I'd like to know what
they're going to do differently to grow from 26% to 40% of revenue in Europe. Ascend basically
has two main revenue generators:

1) Remote access gear (TNT and MAX)
2) Frame/ATM access and WAN switching gear

Remote access is by far the greatest portion (roughly 50% according to the 10-K), and UUNet
accounts for 10-20% of Ascend's *total* revenue (i.e. 20-40% of remote access revenue). As far
as I know, UUNet in Europe doesn't use Ascend gear.

In addition, the most recent figures from Dell'oro et al. show that Cisco, 3COM and Ascend are
more or less level-pegging in terms of remote access concentrator revenue shipments. Ascend and
3COM revenues have been declining and Cisco has climbed.

At the same time, there is considerably more competition in the remote access concentrator space
than ever before: Cisco's AS5800, Nortel's (Aptis') CVX 1800, Lucent PM-4, Bay 5399,
Newbridge/ACC Tigris and a whole bunch of other smaller players. The new Ascend MAX 6000
isn't available in an E1 version, which is surely hampering sales of the MAX 4000 in E1 countries --
i.e. all of Europe. This is especially so after Ascend admitted the 6000 corrects some defects in the
MAX 4000. Price competition also continues to drive down average selling prices.

The frame/ATM market is growing more slowly than the dial market and is a smaller total
addressible market, so it's hard to see how Ascend can grow revenues sufficiently in that area.

Voice over IP is a tiny market (although analyst estimates of total addressible market vary by a
factor of 4!) compared to good old modem dial-up and is unlikely to contribute significant revenues
over the next 12 months. Customer acceptance of products in this space is also unproven.

While xDSL is a fast growing market, it also is much smaller than modem dial and also extremely
competitive. Good old Alcatel competes heavily with Ascend in DSL and has been much more
successful in this arena.

Finally, the GRF gigabit router is a joke. Peanuts in revenue according to the most recent 10-K, the
wise-crack in the industry is that GRF stands for "Get Router Free". This refers to Ascend's
tendency to offer them up as TNT deal sweeteners.

If you've read this board for any length of time, you know I'm an Ascend bear. I don't see how
these conditions translate into almost 100% growth for Ascend revenue in Europe and hence larger
international revenues. Sorry for rambling on, but IMHO there is more momentum investing in
ASND again based almost purely on comments of the same Ascend executives who said everything
was going just great mere weeks before Ascend released dismal results last year.





830ms WestWeb3