One of the key questions facing Nortel is where/if its next high-growth market will emerge.
A year ago, Nortel was bullish on Wi-Max but the recent joint venture with Alvarion made it abundantly clear that the Wi-Max market is not growing as quickly as Nortel would have liked. Hence, the decision to put its R&D dollars into LTE.
An area that may have some promise is 40GB optical technology as carriers looking to ways to carry applications such as high-definition video that chew up a lot of bandwidth.
In a recent research report, TD Securities analyst Chris Umiastowski said Nortel’s 40GB portfolio looks “very strong”:
“Nortel has already won 14 customers with its differentiated 40 Gig optical transport product in only 6 weeks of general availability. We believe this product line could build up to hundreds of millions of dollars of revenue over the next 2-3 years, and perhaps more important, it should pull in at least an equivalent dollar amount of other Nortel optical products. Most impressive to us is Nortel’s win of a $30 million contract to deploy 40 Gig transport on a competitor’s undersea optical amplifier chain. This opens a huge door for Nortel in terms of attacking market share that is currently owned by competitors.”
Earlier this week, Nortel announced a deal with Southern Cross Cable to upgrade its terrestrial optical network in the U.S. to 40GB from 10GB technology. The Southern Cross network provides the major link for Internet traffic from Australia, New Zealand, and Fiji to the U.S. and links Hawaii to the U.S. mainland.
pudditane - you haven't been paying attention. The masses are poor, getting poorer and being culled by the increasingly wealthy elites. Mother earth has provided more than enough resources for everyone to live well. The powers that be have simply let greed take control.
puddintane
I got a famous quote for you, made by an Expert:
"The fact that people are poor or discriminated against doesn’t necessarily endow them with any special qualities of justice, nobility, charity or compassion." - (freedom fighter) Saul Alinksy
In other words:
"The people you’re trying to help aren’t any better than the people you’re working against, and if you interchanged them, you’d wind up with the same struggle on your hands"
The "masses" is mostly "asses".
observer
I Google "NT" click on the "10 yr" button and see a 7 year long flatline from 2001. "Max" shows 1986 to 1996 wasn't all that spectacular either. Spikes in 1982, 1997, 2000 weren't all that typcial.
The flaw in your thinking here is apparent. All that has occurred since the dollar went off the gold standard in the early 1970s is the creation of fiat money, destruction of purchasing power and creation and destruction of wealth via bubbles - first internet now real estate. Soon the commodities will be the next bubble to collapse. Anyone that is a long term buy and hold investor will lose their money eventually. The bankers create and destroy every bubble at their will and rob the masses of wealth. Its happen to many many investors in the last 10 years and will continue to happen to many more. As George Soros has stated in his latest book, we are now at the end of a 25 year superbubble which is set to collapse. The powers that be want us all to believe the systems they've set up works. The truth of the matter is that the systems themselves are corrupt and the root of all the problems.
Hogan
Wow..what an answer..lol.
Just what I thought...nothing to say worth reading.
puddintane
I Google "NT" click on the "10 yr" button and see a 7 year long flatline from 2001. "Max" shows 1986 to 1996 wasn't all that spectacular either. Spikes in 1982, 1997, 2000 weren't all that typcial. I'm supposed to believe that optical is gonna work because its just time for a spike? Is that a fact?
Hogan
Okay Insider and Optical Nortel (ex employees?) I am calling your bluff.
How...I repeat How will Nortel not execute, fall behind and not deliver on 40G
And how is it taking it to the cleaners?
Do either of you guys know what day it is?
Pleae redeem yourselves with honest answers that make sense.
Please...give us facts or shut up.
Insider
Nortel is taking its one bright spot which is Optical and taking it to the cleaners. They may get a lot of orders but won't be able to deliver.
OpticalNortel
Yes Nortel is ahead in 40G but they cannot execute and will fall behind.
Nortelhand
Nortel needs to execute and capitalize on this and move into other clients and potential clients. If this company could get the rest of their product line this strong and innovative Nortel may actually make money. Now that would be something?
I am sure most of us are sick and tired of Nortel continually disappointing in the market. But optical has been the foreseen bright spot for some time.
anonymous
Study says many dial-up users don't want broadband By ANICK JESDANUN, AP Internet Writer
Thu Jul 3, 1:34 AM ET
A new study suggests that attitude rather than availability may be the key reason why more Americans don't have high-speed Internet access.
The findings from the Pew Internet and American Life Project challenge the argument that broadband providers need to more aggressively roll out supply to meet demand.
Only 14 percent of dial-up users say they're stuck with the older, slower connection technology because they can't get broadband in their neighborhoods, Pew reported Wednesday.
Thirty-five percent say they're still on dial-up because broadband prices are too high, while another 19 percent say nothing would persuade them to upgrade. The remainder have other reasons or do not know.
"That suggests that solving the supply problem where there are availability gaps is only going to go so far," said John Horrigan, the study's author. "It's going to have to be a process of getting people more engaged with information technology and demonstrating to people it's worth it for them to make the investment of time and money."
Nonetheless, the Pew study does support concerns that rural Americans have more trouble getting faster Internet connections, which bring greater opportunities to work from home or log into classes at distant universities. Twenty-four percent of rural dial-up users say they would get broadband if it becomes available, compared with 11 percent for suburbanites and 3 percent for city dwellers.
Vint Cerf, one of the Internet's key inventors and an advocate for the idea that the government should be more active in expanding broadband, suspects that many more dial-up users would be interested in going high-speed if they had a better idea of what they're missing. He pointed out that broadband access is available from only one provider in many areas, keeping prices high and speeds low.
"Some residential users may not see a need for higher speeds because they don't know about or don't have ability to use high speeds," Cerf said. "My enthusiasm for video conferencing improved dramatically when all family members had MacBook Pros with built-in video cameras, for example."
Overall, Pew found that 55 percent of American adults now have broadband access at home, up from 47 percent a year earlier and 42 percent in March 2007. By contrast, only 10 percent of Americans now have dial-up access.
Despite the increase in overall broadband adoption, though, growth has been flat among blacks and poorer Americans.
Of the Americans with no Internet access at all, about a third say they have no interest in logging on, even at dial-up speeds. Nearly 20 percent of nonusers had access in the past but dropped it. Older and lower-income Americans are most likely to be offline.
Pew's telephone study of 2,251 U.S. adults, including 1,553 Internet users, was conducted April 8 to May 11 and has a margin of sampling error of plus or minus 2 percentage points. The error margins for subgroups are higher — plus or minus 7 percentage points for the dial-up sample.
The Promise of 40G Technology
One of the key questions facing Nortel is where/if its next high-growth market will emerge.
A year ago, Nortel was bullish on Wi-Max but the recent joint venture with Alvarion made it abundantly clear that the Wi-Max market is not growing as quickly as Nortel would have liked. Hence, the decision to put its R&D dollars into LTE.
An area that may have some promise is 40GB optical technology as carriers looking to ways to carry applications such as high-definition video that chew up a lot of bandwidth.
In a recent research report, TD Securities analyst Chris Umiastowski said Nortel’s 40GB portfolio looks “very strong”:
Earlier this week, Nortel announced a deal with Southern Cross Cable to upgrade its terrestrial optical network in the U.S. to 40GB from 10GB technology. The Southern Cross network provides the major link for Internet traffic from Australia, New Zealand, and Fiji to the U.S. and links Hawaii to the U.S. mainland.
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