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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: David Lawrence who wrote (16016)	6/12/1998 1:37:00 AM
From: Scrapps	Read Replies (2) \| Respond to of 22053

Ericsson Invades U.S. World leader aims for 20 percent of global market By Peter Lambert/tele.com 6/11/98 The rest of the world apparently isn't enough for Ericsson Telecom AB (Stockholm, Sweden). The world leader in wireless telecommunications yesterday moved its data communications headquarters to Boston. Ericsson hopes this move, coupled with an acquisition and new product families, will position it as a player in the pivotal U.S. datacomm market. With a goal of securing 20 percent of global data communications, it announced the acquisition of a stake in a U.S.-based integrated data and voice access technology supplier and unveiled a raft of service integration and high-speed access products, led by asymmetric digital subscriber line (ADSL) for Internet protocol (IP) equipment and dense wavelength-division multiplexing (DWDM) products and components. The move of Ericsson's reorganized Datacom Networks and IP Services Business Unit to Boston hinges on the assumption that the explosive growth of packet-switched carrier networking will provide a new entry point into U.S. market share for vendors who have traditionally won all their business in other continents. "No company can be serious about claiming leadership in data communications without a U.S. presence," Anders Igel, executive vice president of Telefonaktiebolaget L.M. Ericsson AB (Stockholm, Sweden) and head of Business Area Infocom Systems, said of the Boston ground-breaking. "Within 10 years, we expect more dollars will come to us in data than in telecom, and at that point we will not be able to discriminate between telecommunications and data communications. The vision is multimedia communications." Indeed, any vendor who does not make a serious play for the U.S. datacomm market, and particularly the high-revenue, value-added virtual private networking (VPN) market, "will be dead on arrival," said Tom Nolle, president of consultancy Cimi Corp., which estimates that 80 percent of carrier profits will come from data services by the year 2010. Ericsson's emphasis will be on carrier-class data networking, including central office, point of presence and enterprise wide area network (WAN) access gear, with its AXE multiservice asynchronous transfer mode (ATM) line of switches leading the charge. To fill in the low end of that switching line, it has purchased, for an undisclosed investment, a minority stake in Mariposa Technology Inc. (Petaluma, Calif.), maker of an access switch that combines wide area ATM switching, routing, and private business exchange technologies--all at a price Mariposa president and CEO Stefan Mazur claims is four to five times lower than comparable equipment in standalone form.