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Technology Stocks : Westell WSTL -- Ignore unavailable to you. Want to Upgrade?

To: Eric Goethals who wrote (11260)	6/4/1998 5:12:00 PM
From: bill c.	Read Replies (1) \| Respond to of 21342

Hi Eric, I agree that Alcatel's purchase of DSC is a threat to LU's CO/DLC market share. Alcatel has purchased a Litespan product that can sit in the CO or RT and provide an existing alternative to the 5ESS switch. I'm sure the Big Wigs at Lucent are fully aware of this. >> The only thing that does not jive with me is if Alcatel was interested in USWEST, why wait until after the Bell announcement to announce the buying of DSC? << I was under the impression BEL would announce during SuperComm98 or after. It may have been the other way around.... BEL may have moved their announcement up. >> (This is more than just DSLAMS and modems) << No doubt about it. Alcatel now has a DSC unit and 8 million lines, which only take a line card to upgrade for ADSL. Alcatel needed a DLC for the JPC group, now they have one. Alcatel and DSC are going to compete against a 5ESS solution, which only requires a plug/line-card for ADSL. No additional power or racking, it works off the existing switch. Alcatel didn't have this until they purchased DSC. >> In other words, DSLAMS are there to stay and not change. << Westell will have line cards that fit into the existing DSC Litespan unit, LU 5ESS, SLC-5 and SLC-2000 units. The DSC and LU racking will stay. Westell can/will provide the plugs for any of the above solutions. Let me put it this way... does DSC or Alcatel have plugs for the LU 5ESS, SLC-5 or SLC-2000 solutions? Would BEL be interested in one company providing the plugs/line-cards for any of these platforms? >> Now the future Westell DMT modems are not a not a shoe-in anymore. << The big $$$$ is in the CO/RT, not the ATU-R modems. Why does Alcatel feel they need to merge with DSC? Why did Ciena merger with Tellabs? They are merging to compete against Lucent.... until later.