Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (6033)	8/20/1998 5:25:00 AM
From: Glenn McDougall	Read Replies (2) \| Respond to of 18016

Newbridge lands networking deals By SIMON TUCK, Ottawa Sun Newbridge Networks landed portions of two major contracts yesterday that should bring the Kanata-based firm about $500 million over the next four or five years. Both contracts are to provide the guts of new wireless networks for Canadian customers, major wins in Nortel's geographic and technological backyard. "It's definitely going to give Newbridge a pat on the back to beat out Nortel on both of these," said Robert MacLellan, a technology analyst with Kearns Capital Ltd. Newbridge is expected to land most of the $400 million that MaxLink Communications plans to spend on Canada's first commercial local multipoint communication system (LMCS). The new network, the product of more than a year of work between MaxLink and Newbridge, will provide voice, video and data services to 33 Canadian markets. Newbridge is also expected to get about half of the $450-500 million Western International Communications Ltd. (WIC) plans to invest in its own LMCS network. It's expected to be introduced throughout Canada in the first quarter of next year. Telecommunications giant Alcatel is the other partner in the WIC Connexus deal and will provide the radio frequency portions of the network. The two wireless networks will have the ability to provide high-speed Internet access, data services, telephone traffic, and videoconferencing, encryption, video monitoring and distance learning and medicine. Newbridge spokesman Paul Goyette said the company wouldn't release the value of the contracts but "a substantial portion of the network cost will come to Newbridge." MacLellan said Newbridge should earn $492-550 million from the two contracts and will charge gross margins of about 59% -- the industry average -- in the first year or two. But MacLellan warned that the revenues have already been included in Newbridge's numbers and shouldn't have much impact on analysts' figures. He also said the wireless industry has a poor record of fulfilling its promises. "It's good news but we have to put a question mark beside them." Newbridge shares fell 60cents yesterday on the TSE to close at $35.

To: pat mudge who wrote (6033)	8/20/1998 2:06:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

M ET The Nation's Homepage New services raise Internet stakes SAN FRANCISCO - Industry executives predict more casualties among the USA's 4,500 Internet providers as a growing number offer Web users a new wave of services, such as voice mail and video conferencing. This week, Sun Microsystems and Lucent Technologies announced a system that lets users get both their voice mail and e-mail from one inbox on the Web or an ordinary phone. Similar systems are coming from two other partnerships, Netscape-Amteva Technology and Software.com-Mediagate. Technology like "unified messaging" and Internet phone calling might be the boost struggling companies need to raise prices from $20-$25 a month for unlimited Internet use, says International Data Corp. analyst Paris Burstyn. Small, local Internet service providers (ISPs) and large national ones are in the best position to survive, says Susan Almeida, president of The Almeida Group, a consulting firm in Hingham, Mass. The smallest ISPs can make money by offering Web site design. Plus they have lower costs and less-demanding customers. The biggest, like America Online or AT&T, have size and financial muscle. But many midsize companies - those with revenue less than $100 million or fewer than 250,000 customers - lack the capital to keep pace. Research firm The Gartner Group estimates the number of Internet providers will drop to about 500 by 2002. In fact, the shakeout is under way: RCN, Verio and SBC are becoming national players by acquiring smaller companies such as Erol's in the mid-Atlantic, Hiway in Florida and PacBell Internet in California. Newcomers, such as Level 3 and Big Planet, also have an edge because they don't have old technology to upgrade. They can start out offering advanced features. Earthlink Network, the No. 6 Internet service, according to Jupiter Communications, has upgraded its computer system twice in nine months to keep ahead of technology. "Most ISPs can't do that," says Vice President Kirsten Kappos. Sun CEO Scott McNealy sees ISP consolidation as an important step toward making the Internet accessible from anywhere, much like cable TV. "We don't need 7,000 service providers, just as we don't need 7,000 electric utilities," says McNealy, who says soon a wide range of appliances and consumer devices will be connected via the same network. By Doug Levy, USA TODAY