Wanted: More Bandwidth

Forbes has a story looking at how the growing amount of Internet traffic (video, gaming, data, etc.) is forcing carriers to expand their networks, and provide some sweet business to equipment suppliers such as Nortel, Cisco and Alcatel. Infonetics projects that major carriers will spend $203.1-billion on capital expenditures this year, up 5% from last year – much of it focused on the “last mile” to serve the needs of residential and business users as opposed to long-haul networks. Infonetics expects sales of metro Ethernet equipment will triple from about $5-billion in 2005 to more than $15-billion in 2009. Nortel CTO John Roese, who’s enjoying his 15 minutes of fame, told Forbes that “It’s surprising to [carriers] that we’re starting to see bandwidth growth in a way that we maybe didn’t predict.”

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3 Responses to “Wanted: More Bandwidth”

  1. Observer Says:

    Didn’t Enron forecast enormous demand for increased bandwidth too? =)

    Looking at it realistically, how much greater demand and emphasis will be placed on data hungry music and video apps? Or IP/TV for that matter. An arena dedicated to the consumer market. All this future stuff sounds cool like VoIP but is slow to take off and questionably profitable with increased competition and its own unique problems.

    Nortel should stick to fine tuning what they have in PBX and core business and never mind the pipe dreams in Wimax that are only costing them money in R&D and where others increasingly dominate, or selling others server software for enterprise applications, etc…

    Nortel may do better much smaller, restructured under financial protection, at a fraction of its size in fewer markets, albeit this is no guarantee but it sure better than where this mammoth is heading with all its costs and trying to be everything to everyone with failed gambles, cash decline, printing Nortel paper for survival, etc… to look like a player where it stands increasingly alone amidst its merging peers.

    Even if demand did triple, how much of the pie would Nortel get is another question.

  2. Not Observer Says:

    You’re talking out of both sides of your mouth again (as usual). You crap all over Nortel for cancelling their Multiservice Edge Router (Neptune) but then say they would be better off focused on fewer markets. You crap all over the Microsoft Alliance, then say they would be better off focused on their PBX business, which is exactly what the Microsoft Alliance is all about.

    It is clear that it doesn’t matter what Nortel does, you are going to whine about it in some way or another.

    The truth is there are many different influences driving the increase in bandwidth demand. Video delivery is one of them. Interactive and Collaboration applications is another. Medical applications such as on-demand sharing of MRI images is another.

    It is good news that Market Research organizations such as Infonetics are forecasting growth. It shows that Nortel and their competitors are on the right track with their market projections.

  3. Observer Says:

    Yes, and we saw how Neptune turned out as an another contradiction among endless contraditions now that you mension it. More to my point in that nothing they are doing is working, all punch lines contrary to the cheerleading over the last few years.

    The Microsoft alliance is another for them to sell Microsoft’s server software to enterprise and Dvorak has clearly outlined his views as this being shear nonsense. Do you see a billion is sales from this?
    http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B9D898B31%2DA37F%2D4D7E%2DA2DF%2DA83C8A201AB7%7D&source=blq%2Fyhoo&dist=yhoo&siteid=yhoo

    Also Nortel’s merging competitors are not in the same boat Nortel is in.

    What maeks you think they are “oin the right track with market projections” when they have not been yet? Even their estimates in revisions doubled, and what optimsitic balance of 2006?

    Every even if Nortel had a product, who would buy it? We see how the industry is shunning anything they have or had. Sprint went with Samsung/Motorola for Wimax, BSNL was as much of a dissapointment as PEC, BT used anyone but them, etc., it is endless as they announce piddley orders cutting product with out of control costs.

    Cheerleading their struggles over the last few years has proven incorrect.

    My opinion is their outlook is dire, as they also have fallout from one of the worlds largest frauds to conteend with too, reverse splits, dillution, printing paper at a multiple of cash, exhausting assets to point of selling business, etc., that further plagues them above losing business and marketshare lacking credibility and reliable numbers to boot as criminal results loom.

    This mammoth is on borrowed time with seemingly callous disregard for shareholders and employees as they revise, hype, and contradict with so many still there while shrinking and cheerleading traditional contradictions, not the crtics.

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