Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ian@SI who wrote (10198)	3/11/1999 4:38:00 PM
From: Geof Hollingsworth	Respond to of 18016

My view is somwhere between yours and Peppe's. The announcement by T was for the Class 4 switches (DMS-250's) which will be deployed at the edge of both the AT&T and Teleport core networks in order to facilitate their integration. I understand their selection was related to the usual desire to have a second source (to LU) plus the work NT is doing to have a migration path from circuit to packet. This is a relatively small deal in a clearly declining product area. Separately NT is also supplying DMS-500's local/long distance switches to Teleport, where they are already an entrenched supplier (around a third of the installed Teleport switch base). This is a much more significant opportunity-in the hundreds of millions, I would guess. Neither one affects the role of LU as the primary supplier to T, but any time you have a credible second source, the impact on margins is not favorable (for either supplier).