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Technology Stocks : Glenayre Technologies(GEMS)- a pure cellular PCS play? -- Ignore unavailable to you. Want to Upgrade?

To: Link Lady who wrote (3053)	4/17/1999 2:54:00 PM
From: Link Lady	Read Replies (1) \| Respond to of 3431

Not about GEMS but Wirless Industry canoe.com mentioned Nortel inks $60M in deals with China Wireless networks: Telecom giant to expand Chinese manufacturing By JILL VARDY The Financial Post OTTAWA - Northern Telecom Ltd. used a visit from Zhu Rongji, the Chinese premier, to its Ottawa research and development campus as an opportunity to announce $60-million (all figures in U.S. dollars) in contracts to build wireless networks in China. It's not a huge contract for Nortel, which is expected to report $22-billion in sales this year. But it signals a growing area of business for the telecommunication equipment supplier, said John Roth, the company's vice-chairman and chief executive. Mr. Roth said wireless equipment sales account for about 20% of Nortel's revenue. "It's a very important part and one of the fastest-growing pieces of Nortel's business," he said. The China deal will see Nortel expand two digital wireless networks in Zhejiang province for China Unicom. "A $60-million contract for a $22-billion company, that's a rounding error," said Robert MacLellan, technology analyst at CT Securities Inc. But it reminds investors that Nortel is one of the two biggest providers of wireless technology, he said, which is pegged to be a fast-growing subsector of the telecom industry. "You can consider Nortel to be one of the leaders in the wireless market. It and Lucent Technologies Inc. offer the most complete suite of wireless systems," Mr. MacLellan said. Mr. Roth said the industry is seeing a blurring between wireless and wireline operations as wireless prices come down. "I've seen people in the airport in a phone booth -- because it's a comfortable place to sit and use their cellphones," he said. "The whole way we're thinking about wireless phones is changing and we're seeing a real marriage between wireless and wireline. My prediction is, in a few years, it will be hard to figure out which business is which." He noted that Nortel has won several contracts to supply a combination network of wireless and wireline equipment. That will be more common as more data is sent over wireless networks. "We think, in the next five years, wireless data could be one of the bigger parts of the wireless business. We're well-positioned in that area because of the strength that we have in doing wireless and data-networking," Mr. Roth said. To prove it, the company gave the Chinese premier a demonstration of cmda2000, which is next-generation wireless Internet technology that can send very high-speed data and video signals. Nortel's China deal also coincides with an announcement it will put another $30-million into its joint-venture company, Guangdong Nortel, to begin Chinese manufacturing of wireless equipment. The increased business in China could compensate for unexpectedly slow sales of wireless networks in South America this year. "There's reasonably good speculation out there, confirmed by the company in some cases, that wireless expansion in South America is below plans," Mr. MacLellan said.