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

To: Peppe who wrote (10149)	3/8/1999 9:56:00 PM
From: zbyslaw owczarczyk	Respond to of 18016

Peppe, do you think that BT would take Fore System platform which can not perform up to what BT demand?, and which is for WAN enterprise-much smaller networks. As far as G1(DT,FT and Sprint International.BTW, both DT and FT have sustential stake in Sprint), are you sure that both accounts are controlled by Siemens?!!! When C&W has choosen NN(220 mil+ UK at Spring of 98 and much more at fall 98),did you see who announced the contracts.Newbridge not Alliance what means C&W account is controlled by NN. On cc ATT, SBC and C&W were listed separately but BT went via Siemens. The customer is the end judge,and Siemens had known what products they need to dystribute when they have choosen NN as a partner. The NN offers technology, when Siemens its presence and support and sales force.Remember that with the sales of good ATM platform goes along other products which NN do not make but Siemens does. I agree that in theory alliance breakout woud affect NN price, at least for short period of time, but I strongly belive BT would say to Siemens we NEED NN products. The next day ERICY would be in Kanata and offer new alliance to NN. Sinece you finally convince that NYT was not correct regarding alliance, we may put the argument at rest. Zbyslaw

To: Peppe who wrote (10149)	3/8/1999 11:26:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

Peppe -- I don't mind getting egg on my face, so here goes: I can't disagree with you more on this one. Do you think that there would be a G1 contract without Siemens ? It works both ways, would Siemens get G1 without NN? If push came to shove, one would get FT and the other DT. Can Newbridge replace 20% of their revenue ?? I doubt it. If there were no alliance, Siemens would still sell NN's products if that's what the customer requested. Right now their biggest foe is Cisco and yet they're the largest re-seller in the world. The customer rules. If by value you and Doug are inferring share holder value, who's stock would drop more if the alliance was terminated tomorrow ? Moot point unless you want to compare Siemens' networking division only. On the other side of the argument, whose stock is more likely to appreciate from here, one whose main products are among the fastest growing in the sector or one with a minute slice of business in that sector and in the case of losing its partner, one without a complete solution? I'd argue that Siemens could replace NN's products with an alliance with FORE. They admittedly don't have products as mature as NN, but Siemens has great relationships with European carriers and that's the value they bring to NN. Clarify what you're saying. Can FORE deliver a substitute for the 170? And how does their relationship to European carriers help them acquire the needed products? "Excuse me, we're pals, so would you please accept this little Fore switch in place of the 170?" Who would NN use to replace Siemens ? There is no channel better than Siemens on a global scale and that's why the alliance works. But, if I'm not mistaken, NN goes through GEC/GPT for BT, and controls the contracts at FT (part of G1), AT&T, SBC, Guangdong PTT, Telkom South Africa, Energis, and C&W, to name a few. Yes, it would be difficult to replace Siemens' sales channel, but not nearly as much as it once was. Considering that NN is the only carrier scale ATM company left unspoken for on the planet, I maintain they have an enviable bargaining position. I'm not talking about near-term stock price, but over-all strategic positioning. Pat