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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: TheSlowLane who wrote (3533)	5/4/1999 2:21:00 PM
From: MikeM54321	Read Replies (1) \| Respond to of 12823

Re: ATM vs IP / LU vs NT Paul, Thanks for posting the interesting article. I thought this clip was appropriate to your article, even though it's somewhat counter. There is a dearth of articles that are pro ATM. I kind of get tired of all the, "IP will Rule the World," articles. Kind of refreshing to hear ATM isn't dying a quick death for a change. MikeM(From Florida) ------------------------- Nortel's John Roth is an unlikely radical. But when it comes to exploiting the Internet, he's giving much bigger rival Lucent a run for its money. ...Lucent and Nortel are also poles apart in their view of "asynchronous transfer mode" as the technology of the digital age. Widely used today, ATM is a "packet" technology that allows large amounts of information to be transmitted very quickly. In January Lucent paid $20 billion to acquire Ascend Communications, a leader in ATM technology. Nortel, while a major supplier of ATM equipment, is placing its money on IP (Internet Protocol), an alternative to ATM. IP is capable of handling more data, but so far is less reliable. Roth is betting that ATM can't keep up with the exploding traffic on the Internet and will begin to diminish in importance in the next five years. "The consumption of bandwidth is growing so fast, between now and 2001, we will have to build as much long distance capacity into U.S. networks as has ever been installed to date," says Roth. "Three years after that we'll double it again." There will be a lot of business to keep both Nortel and Lucent busy, but Paul Litva, an analyst at Toronto Dominion Securities, wagers that Nortel will grow a little faster. "Nortel has a greater emphasis on IP and it's ahead of the game in Europe, the next big market for telecommunications," Litva says. He sees a 15% annual sales growth for Nortel versus 13% for Lucent.