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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Ron Dior who wrote (2698)	5/14/1999 11:04:00 AM
From: Ron Dior	Respond to of 14638

This won't hurt either! Nortel Wins AT&T Equipment Order for Up to $350 Mln (Repeat) Bloomberg News May 14, 1999, 5:35 a.m. PT Nortel Wins AT&T Equipment Order for Up to $350 Mln (Repeat) (Repeats story sent late yesterday.) Brampton, Ontario, May 13 (Bloomberg) -- Nortel Networks Corp., the No. 2 phone equipment maker in North America, was awarded a contract by AT&T Corp. for as much as US$350 million in local-telephone equipment, beating out rival Lucent Technologies Inc., people familiar with the order said. AT&T, the No. 1 U.S. long-distance company, will buy $100 million of switches this year and is likely to purchase as much as $250 million more by the end of 2000, the people said. The company will use the switches in the cable-television network it purchased by acquiring Tele-Communications Inc. AT&T and Nortel, based in Brampton, Ontario, near Toronto, declined to comment. AT&T is updating the cable-TV network to provide local-phone services, letting the company compete with Bell Atlantic Corp. and others. The order is a breakthrough for Nortel, since New York-based AT&T previously bought all its switches from Lucent, a former unit and the world's biggest phone-equipment maker. ''Every contact win they (Nortel) get with AT&T is very significant,'' said TD Securities Inc. analyst Paul Litva, who rates Nortel a ''buy.'' AT&T's equipment budget is $11 billion to $12 billion this year. Local Push AT&T's push into local service opens up another sales avenue for Nortel, analysts said. TCI, acquired by AT&T in March, agreed in February to buy as much as $900 million of equipment from Arris Interactive LLC, a joint venture in which Nortel owns a majority stake. ''There's a lot of potential at AT&T,'' said Litva. ''AT&T spends a lot of money and Nortel has never really had access to it.'' AT&T also is testing new equipment from Nortel that helps move data traffic over voice networks and gives data networks sophisticated voice features. The New York-based company is expected to buy as many as 33 DMS-500 switches, which sell for about US$10 million each, under the agreement with Nortel. Lucent, the Murray Hill, New Jersey- based unit that AT&T spun off in 1996, declined to say whether it bid on the AT&T contract. ''We continue to do well with our business with AT&T,'' said Lucent spokesman Bill Price. AT&T bought US$3.78 billion of Lucent equipment in the fiscal year ended June 30, 1998.