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

To: pat mudge who wrote (6168)	8/26/1998 1:09:00 AM
From: revbill	Respond to of 18016

hi pat article from financial post website about ca*net3. curiously nothing on q1 results. will check the ottawa paper sites canoe.com

To: pat mudge who wrote (6168)	8/26/1998 1:18:00 AM
From: Frank Byers	Read Replies (3) \| Respond to of 18016

I think Newbridge is blowing smoke regarding the LMDS market. In case you weren't following the US LMDS auctions, there was little RBOC interest and many licenses were not even bid on. It was a bust. The problem is line of sight limitations and the need for a very high speed pipe to each LMDS site. You can't mass market a service that only has potential to serve 80% of your geographic area. Maybe it works better in the plains of Manitoba but really, MMDS and LMDS have been a disaster, and I can tell you personally after having guessed wrong on CAWS, ATEL and HART. I'm not sure what exactly Newbridge thinks their advantage is for LMDS anyway, and why they think they have a lead on the market. Nortel has a large contract to supply high speed radio access gear to Teligent, which has a business that basically is the same as most envision the LMDS spectrum will be used for. LMDS data is going to get eaten alive by cable modems and XDSL, just like MMDS data did ( it never happened although last week there were some stirrings again). Customer Premesis Equipment is over for video and data is over $1K, who can afford to subsidize that? I suspect NN is financing the infra equipment purchases to help get their foot in the door, but I would advise against building in any LMDS revenues, except for some trials and small deployments, until someone comes forward with a realistic business case. It's like WLL in some ways, everyone thought it would take off like gang busters, lot's of infra suppliers developed systems for WLL, and have regretted it. But, the ATM market is hot and they should do well there. I just don't know how much value you can put on a company that is not growing their earnings in this market. Growing the top line is nice, but where is the bottom line going? FB