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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Morytko who wrote (52803)	8/26/1998 9:10:00 AM
From: Neil H	Read Replies (2) \| Respond to of 61433

Wednesday August 26, 8:06 am Eastern Time Company Press Release Deutsche Telekom, Europe's Largest Telecommunications Company, Announces New "PC-to-Phone" Pilot Project Using Ascend's MultiVoice Voice-over-IP Platform ALAMEDA, Calif.--(BUSINESS WIRE)--Aug. 26, 1998--Ascend Communications, Inc. (NASDAQ:ASND - news), a leader in wide area networking (WAN) solutions for providers and users of the Public Network, announced today that Deutsche Telekom will launch a wide scale pilot Voice over IP (VoIP) telephony service this year, using Ascend Communications MultiVoice for the MAX platform. The new pilot VoIP service will provide 1,000 T-Online subscribers (the online and Internet service of Deutsche Telekom) with the ability to make International calls using VOIP: subscribers simply dial via a multimedia-PC, which converts the call into IP-packets, and the call is automatically routed to the nearest Deutsche Telekom Point of Presence (PoP). The number dialed determines the way the packets are routed into the public network from the PoP. At the given destination, e.g. New York, the Voice-over-IP-Gateway, equipped with Ascend's MAX 6000 WAN access switch, converts the IP packets back into voice and forwards the call to the public network. The receiver can simply pick up the call via a standard telephone. The ''PC-to-Phone'' pilot project will offer VoIP connections from Germany to the following countries: Austria, France, Great Britain, Italy, the Netherlands, Switzerland, Australia, Hong Kong, Japan, Singapore as well as the USA and Canada. ''We expect positive synergy between our existing dial-in access platform, using Ascend's technology, and our PC-to-Phone-Project, as we can easily combine Ascend's MultiVoice platform for the new VoIP service with their proven access technology,'' said Wolfgang Schmitz, Senior Manager for Deutsche Telekom's Center for Internet and Data Network Platforms in Darmstadt, Germany. ''We are very pleased that Europe's largest carrier will be using our solution in their pilot VoIP service,'' said Roger Boyce, Vice President and General Manager of Ascend Communications Enterprise Access Division. ''Deutsche Telekom's new PC-to-Phone project is not only based on our powerful dial-in access equipment, but also on Ascend's expertise in the VoIP telephony sector.'' T-Online is the online and Internet service of Deutsche Telekom AG [NYSE:DT - news]. With a total of 2.3 million users it has become the biggest in Europe. In addition to traditional services like on-line banking, databases, on-line shopping and information systems, T-Online also offers comprehensive Internet services. Further information can be found on the World Wide Web at: t-online.de. Regards Neil

To: Steve Morytko who wrote (52803)	8/26/1998 11:47:00 AM
From: bucky89	Read Replies (1) \| Respond to of 61433

I disagree with the idea that ASND/LU marriage makes LU a data networking powerhouse and that LU stock will soar as a result. ASND has a niche, and by no means are they anywhere near the likes of CSCO, BAY, and 3COM. ASND would be one of several acquistions necessary for LU to compete broadly with CSCO. Never thought LU would be a powerhouse with ASND. Rather, it would give them some basis to maintain their bloated stock price. Wouldn't be pretty if LU got a 50% haircut from today's levels, something I consider very likely. ASND has more than a niche right now. They are more than just a RAS company. They are in the core of carrier networks, and that carries quite a bit of leverage. They are in a much better position than 3Com or Bay. Remember too that LU products attempt to compete in many of the same markets as ASND. They seem more like a competitor to me - one with an overvalued stock price. True only to a certain extent. LU has no multiservice switch. They may be working on one, but they've got to be at least two years behind Cisco and Ascend, if not much more than that. The product overlap is in the boneheaded acquisitions they made with Yurie and Livingston. These guys were niche players before LU, and they still are while part of LU--not necessarily REAL competition. ASND's real competitor is Cisco. Other than that, I really agree with your comments. bucky89