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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Stephen B. Temple who wrote (2140)	10/14/1998 5:47:00 PM
From: Kenneth E. Phillipps	Read Replies (2) \| Respond to of 12823

Are reports of the demise of the telecom equipment sector "greatly exaggerated"? In the past several week, the stock prices of the telecom equipment companies have been crushed. Now, they are showing signs of a comeback. Today, Xylan, a company whose stock price is off 62% from its high, met earnings expectations. Now, we will see what the market does tomorrow. Excel announced two acquisitions - XNT systems and Quantum Telecom. Nortel announced a 200 million dollar contract in Australia. Finally Cisco announced a purchase of Selsius Systems for$145 million. The big question, as we enter the fourth quarter, is whether telecom service companies are going to engage in their usual binge of equipment buying. We have a hint that the rapid pace of technologic change may be actually freezing the telcos in place on their purchasing decisions. Article on Alcatel in 10/12/98 edition of Business Week "Competitiors such as Northern Telecom are also experiencing a slowdown in orders" Do they really know that or are they guessing? This quote from the CEO of Alcatel: "Europe's biggest customers, such as Deutsche Telecom and France Telecom, no longer plan upgrades years in advance. They make decisions far more quickly, basing them on competition and with an eye to quarterly results. "The cycles seem to be collapsing." Is this also happening in North America? Comments Please. Ken