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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Jurgen who wrote (1543)	12/9/1998 9:44:00 AM
From: Don Beals	Read Replies (2) \| Respond to of 14638

Nortel favoured to reap Sprint windfall High-speed switch could help company compete with Cisco to supply $2-billion network Globe and Mail globetechnology.com Nortel favoured to reap Sprint windfall High-speed switch could help company compete with Cisco to supply $2-billion network Wednesday, December 9, 1998 SIMON TUCK Technology Reporter Ottawa -- Northern Telecom Ltd. is poised to nab a huge chunk of business from rival Cisco Systems Inc. through a mammoth Sprint Corp. project expected to be one of the largest in telecommunications history. Sprint hasn't picked out all of the equipment for its new $2-billion (U.S.) network but analysts now say Northern Telecom -- seen as out of the picture when the project was announced in June -- has a new high-speed multiservices switch that could grab just as big a piece of the pie as Cisco. Discounting other suppliers and partners, that would mean the Brampton, Ont.-based company could earn as much as $800-million from this deal over the next five years, one Toronto analyst said. "That's some of the stuff Cisco was supposed to get," said Mark Lucey, a technology analyst at Kearns Capital Ltd. "It looks like Nortel and Cisco will share the lion's share of this account." But many analysts say it's difficult to estimate how much each company will get because Sprint could build the network with almost any mix of Cisco routers and Northern Telecom switches. The size and shape of the network, which Sprint calls the Integrated On-Demand Network or ION, will be largely determined by the market's response. Charles Fleckenstein, Sprint's manager of technology services, said the company is still "kicking the tires" on the new switch, called the Passport 15000, but left little doubt about its potential. "Obviously, Nortel is in our plans. [It] will probably get a lot of work from this project." Another Sprint official said this week both companies' equipment will be used. A Northern Telecom spokesman said it has reached no deal with Sprint. "It's a huge opportunity for us," said Rod Wilson of the carrier packet networks division. "Carriers like Sprint do not bring things into their labs lightly." Northern Telecom has made great progress since June. ION, scheduled to go into action next month, was described during its unveiling as a venture between Sprint, data networking giant Cisco, software operation Bellcore (owned by the Bell companies) and retail giant Radio Shack, which is doing the customer services and is selling products. The project, designed to integrate data, voice and video services over a single network for business customers, was seen as a major loss for Northern Telecom, which has long been a key supplier for Westwood, Kan.-based Sprint. In the past six months, however, three key changes have helped turn the tide. In August, Northern Telecom completed its $7.6-billion purchase of Bay Networks Inc. of Santa Clara, Calif., giving it a major data networking presence. Three months later, the Canadian company, now referring to itself as Nortel Networks, released the Passport 15000. Meanwhile, the focus of ION moved from Sprint's marketing department -- where there was a strong Cisco tie -- to its engineers, who have worked for years with Northern Telecom. On Nov. 11, Marty Kaplan, Sprint's highly respected chief technology officer, endorsed the 15000 in a press release. "We are pleased to be a lead lab trial customer for the Passport 15000 as we continue toward a single unified network offering total integration of all services," Mr. Kaplan was quoted as saying. Mr. Fleckenstein didn't deny Mr. Kaplan's support is meaningful. "Marty Kaplan endorsing anyone is significant." If Northern Telecom does land a generous piece of the ION project, it will mean a lot more than just revenue. Landing a large, leading-edge customer such as Sprint would be a huge endorsement for Northern Telecom and its high-stakes bet on data networking. The 15000 is also being tested by Transpac, a unit of France Telecom SA. Mr. Wilson said the company believes the 15000, which sells for $5,900 (U.S.) a port, has the potential to top the $1-billion-a-year revenue mark and become the most important product in its

To: Jurgen who wrote (1543)	12/10/1998 7:58:00 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 14638

Ericsson CEO comments on 1998 results STOCKHOLM, Sweden--(BUSINESS WIRE)--December 10, 1998--Ericsson's Chief Executive, Sven-Christer Nilsson, today commented on his expectations for the full year 1998 results for Ericsson. In a meeting with financial analysts in Stockholm Sven-Christer Nilsson stated that he expects the full year 1998 income for the company to be somewhat below market expectations. Net sales for the full year are also expected to be somewhat below market expectations. ''My estimate is based on our view of the continued impact of the global financial crisis which is effecting demand in some of Ericsson's operations, including in particular Public Networks. The scope of these effects is reflected in our internal reports for November, which have just become available. Even though there are certain general signs of recovery in some Asian markets there are wider repercussions on global demand, which are now affecting sales and income. The financial crisis in certain markets and the related general economic uncertainty, which we have pointed to in our quarterly reports during the year, is affecting us and emphasizes with renewed strength the need for a strengthening of the ongoing rationalization programs. In addition there will be synergies resulting from the introduction of the new organization. All together this will involve substantial reductions in the number of employees which will be announced in connection with our 1998 report on January 28, 1999,'' said Sven-Christer Nilsson. ''In Mobile phones our operating income during the last months of the year is negatively affected by the shift in demand towards entry-level phones with reduced margins. These phones are demanded for the rapidly growing pre-paid services which now account for one third of the market in Western Europe. In spite of a strong increase in volumes we have not been able to compensate for this development in our operating income.'' ''We continue to see strong growth in mobile systems where we have a world-leading position. This is an area where demand remains largely unaffected and where we have a very strong income.'' ''For next year we expect, as I have earlier mentioned, a slow start of the year and a development for the whole year below our long term growth objectives. My expectation regarding Ericsson's long term growth remains unchanged; i.e., we shall exceed the market growth. This we will achieve by continued restructuring at an increased pace and development of our operations in accordance with our strategies.'' Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers - network operators, service providers, enterprises and consumers - the world over. Please visit Ericsson's Press Room at: ericsson.se