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Technology Stocks : TLAB info? -- Ignore unavailable to you. Want to Upgrade?

To: Daveyk who wrote (4459)	12/8/1998 11:19:00 AM
From: Beltropolis Boy	Respond to of 7342

Tellabs Rises as Sprint Says It's Using New Products Bloomberg News December 7, 1998, 2:14 p.m. PT Lisle, Illinois, Dec. 7 (Bloomberg) -- Tellabs Inc. shares rose 9 percent after Sprint Corp., the No. 3 U.S. long-distance phone company, said it's using Tellabs products in its new high-speed data network. Tellabs rose 5 7/16 to 65 9/16. Earlier, the shares touched 65 3/4, their highest since August. On a conference call Friday sponsored by Lehman Brothers Inc., Sprint Chief Technology Officer Marty Kaplan said his company is installing a new Tellabs product that translates voice and data traffic into the asynchronous transfer mode protocol, a type of transmission technology used on Sprint's network. Tellabs spokesman Tom Scottino confirmed Sprint is using its equipment and said the companies plan to issue an announcement soon. The Sprint order is important to Tellabs, whose main business has been supplying equipment for voice networks. Phone companies are pushing to make their networks more data-focused and efficient to take advantage of mushrooming demand for Internet and other data services. "The perception of Tellabs is going to change from being voice-only to playing an important part in these data networks," said Steven Levy, an analyst at Lehman Brothers, who rates Tellabs "strong buy." Sprint's new integrated on-demand network, or ION, combines voice and data traffic on the same system. The company is spending $2 billion over five years to develop ION, which it says will cut its costs of providing phone services 80 percent. Tellabs shares, which have risen more than 20 percent so far this year, rose 3 3/8 to 60 1/8 Friday after the conference call. Sprint shares rose 3/4 to 79 1/2 today. --Andrew Brooks in New York, through the Princeton newsroom