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

To: elmatador who wrote (13)	3/8/1999 11:18:00 AM
From: elmatador	Read Replies (1) \| Respond to of 356

Battling for Europe's networks By Ben Heskett Staff Writer, CNET News.com March 8, 1999, 5:35 a.m. PT They have been lurking around the borders of the United States for some time. Now they are ready to pounce. Later today, European giant Siemens will announce the acquisition of two telecommunications equipment start-ups and an investment in a third, the second such move to purchase data networking technology by a large communications firm in a week. Siemens also plans to unveil a new data networking division based in the United States. Siemens plans to spend about $600 million on two small companies, Argon Networks and Castle Networks. Siemens reportedly also plans to take a stake in a third--Accelerated Networks, a remote access firm. The move follows two purchases by French telco equipment giant Alcatel last week. Rumors also persist that a portion of 3Com's carrier-oriented business could also be purchased by Siemens. Both Siemens and Alcatel are looking for a piece of the lucrative data networking equipment pie and a greater foothold in North America. Given the trend to meld voice, video, and data traffic across a single layout based on Internet standards, data equipment is viewed as a necessity by firms associated with providing systems for telephone companies. "The Europeans are coming, the Europeans are coming finally," noted Craig Johnson, principal with industry watcher the Pita Group, based in Portland, Oregon. "The battles are just now starting" Both Argon and Castle specialize in devices that can migrate telecommunications carriers from older voice technology to new data-based equipment, with each one targeting a separate niche. Other international giants interested in the North American market include wireless giant Ericsson, Fujitsu, and Nokia, among others. "It's been clear for about two years that telecom companies such as ourselves have been trying to find a way to get caught up in this Internet revolution," said Krish Prabhu, chief executive of Alcatel USA, in an interview last week. Siemens has planned a press conference for later today.