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To: Geof Hollingsworth who wrote (9952)	3/2/1999 10:39:00 PM
From: Peppe	Respond to of 18016

The solutions include segmenting the network (fewer homes/node, very expensive) or better modems (12 months away at least for the next upgrade) or....? I agree. And one segments by collapsing segments into routers. I know I'm over-simplyfying the problem. Fact is, there is an insatiable demand for bandwidth and there's room for both ADSL and cable suppliers to profit handsomely. Thanks for your comments, I think I learned something new today !! Cheers, Peppe

To: Geof Hollingsworth who wrote (9952)	3/3/1999 3:33:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Geof --- Here's one to ponder: <<< ALCATEL: Second deal to be revealed By David Owen in Paris and Roger Taylor in San Francisco Alcatel, the French telecommunications equipment company, expects within days to reveal a second big acquisition following its $2bn agreement yesterday to buy Xylan Corporation, a California-based data switching specialist. Both deals are aimed at strengthening Alcatel's position in the fast-growing data networking market. Serge Tchuruk, Alcatel's chairman, indicated an imminent second acquisition would be in the field of remote access, which the company portrays as the only substantial data networking market segment that the Xylan deal will not bolster. However, he declined to give details. Mr Tchuruk described yesterday's deal as a "major step" in the company's strategy of becoming "a key worldwide player in the internet field". Steve Kim, president of Xylan, said the "synergies from combining [our] technology with Alcatel's resources will provide a dramatic boost to Xylan's future success". The market applauded the news. Alcatel's shares, which last September lost close to 40 per cent of their value in a single day following an unexpected profit warning, rose 5.34 per cent to E101.5. Douglas Smith, technology analyst with Salomon Smith Barney in London, said the deal would "fill up some of the holes" in the data networking area of the French company's product portfolio". "It is a deal that they have needed to do because they are under a threat from the three large North American companies - Lucent, Cisco and Nortel. "The $37 a share price - a premium of 37 per cent over Xylan's closing price on Monday of $26 15/16 - was "probably fair considering they are buying a company with strong topline growth, good margins and a product portfolio synergistic with their own". With Alcatel's balance sheet strong and its share price still at a relatively low ebb following last September's debacle, it is no surprise that the acquisition will be made via a cash tender offer - in contrast to the all-paper transactions that are helping to drive rapid consolidation of the industry. The offer will begin on March 8 and is scheduled to expire 20 business days later. Completion, expected in early April, is subject to 90 per cent of shares being tendered. The boards of directors of both companies have unanimously approved the deal. >>>>