What is the prospect market of fiber optics communication

industry?

POTENTIAL FUTURE OF FIBER OPTICS COMMUNICATION?

EE566 Class PresentationJia-Lock WONG

September 10, 2003

POTENTIAL FUTURE OF FIBER OPTICS COMMUNICATION?

IntroductionHistory of CompaniesFeatured ProductsRevenue and Market OverviewJob MarketImprovements and SuggestionsConclusions

Introduction

Fiber Optics Communication Equipments:Optical SwitchOptical MultiplexerOptical AmplifierFiber Optic CablesOptical Transport EquipmentAnd so on……..

Optical Amp

Optical Multiplexer

Optical Switch

Three Giants

LUCENT (www.lucent.com)NORTEL (www.nortelnetworks.com)CISCO (www.cisco.com)

Profile & History

Lucent Technologies Inc. Symbol LU – (S&P 500)

Employees

~ 47,000

HQ New Jersey, US

CEO Patricia Russo, 50:(salary: $14.28mil/yr)

Revenue FY03: $8.6billion

Profile & History

Lucent Technologies Inc. 1996 Spun off from AT&T. Established through

forming the soon-to-be-spun–off system and technology unit of AT&T, such as Western Electric.

1996 – 2001

Progressed through acquisitions such as Ascend, which made Lucent leading provider of data networking.

2001 – 2003

Focus on the largest communication provider, streamlines its portfolio to deliver wireline and wireless products.

Profile & History

Lucent Technologies Inc.

• Owns Bell Research Lab (> 40,000 patented inventions since 1925)• First Optical Switch• Fastest Transmission System over Fiber

• NO. 2 manufacturer in Optical Communications• NO. 1 CDMA Devices manufacturer

Featured Products

Lucent Technologies Inc.

Wavestar TDM 10G MultiplexerTransmit 12,000 encyclopedia volume in a second from New Jersey to Califronia

Expertise in voice switches, wireless base stations, fiber optic cables and transmission equipments

Featured Products

Lucent Technologies Inc.

Dominates wireless broadcasting equipments in North America such as GSM, TDMA and CDMA system

Profile & History

NORTEL Inc.

Symbol NT (NYSE)

Employees

39,690

HQ Ontario, CANADA

CEO Frank A. Dunn, 49Salary: $849,000/yr

Revenue FY03: $9.6bil

Profile & History

NORTEL Inc. 1874 Mr. Graham Bell from Brantford, Ontatio

patented his first phone in Canada. Patent rights go to the National Bell Telephone Company (U.S.) and Bell Telephone Company of Canada.

1882 Due to Canadian patent rights problems, Bell Telephone Company of Canada launches its own manufacturing division in Montreal.

1914 The Northern Electric Company Ltd established. US company Western Electric owns 44 percent, and Bell Canada owns 50 percent.

1966 Researchers at Bell-Northern Research (BNR) publish the first paper considering the possibility of using glass fibers to carry information.

Profile & History

NORTEL Inc. 1972 Northern Electric opens its first U.S. plant in Port Huron,

Michigan.

1976 Northern Electric changes its name to Northern Telecom, unifying international subsidiaries under the corporate umbrella.

1989 NORTEL becomes the first telecom supplier to announce a complete family of SONET-standard fiber-optic products.

1999 Nortel Networks breaks its own speed and capacity record by demonstrating Optical Internet systems that can carry up to 6.4 Terabits per second (Tbps) of Internet and other traffic over a single, hair-thin strand of fiber

Profile & History

NORTEL Inc. 2000 Bell Canada (BCE) distributes 94 percent of its Nortel

Networks stake to shareholders. The corporation is now a totally independent global company.

2000 - 2003

Specialized in tunable lasers for optical networks and optical switching through acquisitions.

Featured Products

Nortel Inc.

Nortel Networks was the first to market • SDH and SONET 2.5 Gbit/s Time Division multiplexing (TDM) • Wave Division Multiplexing (WDM) • 10 Gbit/s TDM and WDM Add/Drop Multiplexing (ADM)• High Speed Optical Transmission Technology OC-192

No.1 Canadian Fiber Optic Firm

Profile & History

CISCO Inc.

Symbol CSSO (S&P 500, Amex Internet, Nasdaq

100)

Employees

34,466

HQ San Jose, CA

CEO John Chambers, 53

Revenue FY03: $20.40bil

Profile & History

CISCO Inc. 1984 CISCO System Established by computer

scientists from Stanford University.

1990 Publicized in NASDAQ.

1995 John Chambers appointed as CEO and president of the CISCO

1998 Initiated IP network solutions and Internet Business Solutions

2000 Pioneer in computer networking used by big corporations.

Featured Products

CISCO Inc.Dominates data networking used by big corporation, 80% of all internet traffic using its router

Specializes in IP based product such as digitizing voice mail and display as email form.

Featured Products

CISCO Inc.

The ONS 15454 DWDMallow the user to scale to 80Gbps leveraging 32 wavelengths passive optical filter solutions

Latest AnnoucementsLucent Technologies SEP 2003

AT&T Selects Lucent Technologies to Provide Next-Generation SONET Throughout Network

Nortel Networks JUN-SEP 2003Verizon Wireless Gives $1B Deal to Nortel

CISCO September 2003Cisco Systems Unveils Color IP TelephoneCisco Delivers Fibre Channel-Based SAN Extension Over SONET/SDH on the Cisco ONS 15454 MSPP, becoming Industry’s Top Platform for deploying FCIP and SAN

Revenue Estimates

Provided by: AmericanTrade Analysts

Company Current Year 2003

Next Year 2004

Sales Growth(%)

Lucent Tech $8.6 bil. $9.1 bil. 5.2%

Nortel Network

$9.6 bil. $10.1 bil. 5.9%

CISCO Inc. $20.40 bil. $22.6 bil. 11.1%

Stock Values

Company Closing Prices As of 9/8/2003

Lucent Technologies Inc.

$2.22

Nortel Network $4.10

CISCO Inc. $20.59

Comparisons Of Stock Values

WE are here

Sales Miscalculations and Over Expansions in Long Haul Optical Networks

Job Market - Wages

Hourly Wages in California Entry Range: $7.00 - $22.00 New to the job - Experienced:

$10.00 - $28.75 After 3 Years with Firm:

$12.50 - $30.00

Job MarketBest Locations for Job Hunting

OTHERS17%

MD2%

DC3%

NJ4%

SC4%

NY5%

MN5%MA

6%FL6%

VA7%

PA8%

CA31%

WA2%

Sampled from 1000 recently posted Fiber Optic Comm.Jobs on monster.com, careerbuilder.com and jobsearch.com

Suggestions (Interview Tips)

Lucent Technologies IMPROVE human resources management: Lost

nearly 2 dozen top managers and engineers due to profit warning on Jan 6, 2002

GOOD NEWS!!! In contrast, Nortel will invest $260mil, hire 3400 people next quarter to meet the demand.

Suggestions

Nortel Networks INTRODUCE stronger products in corporation data

networking business that CISCO dominates

Suggestions

CISCOCONCENTRATE more in optical networking: has

bought bits and pieces to put together an optical networking like Pirelli, Cerent and Monterey. Not enough compare to Lucent and Nortel.

ConclusionFiber Optics Communication Expressway

CISCO raising the speed limitLUCENT adding more lanesNORTEL providing faster transport

equipments

Future is uncertain, however, we know the traffic is increasing .i.e. we need a faster and more sophisticated infrastructure to support the demand.

Quote: Wall Street Journal 2002

Quote: BusinessWeek October 2002

References

www.lucent.comwww.nortelnetweeks.comwww.cisco.comwww.businessjournals.comwww.finance.yahoo.comwww.businessweeks.co.jp

Recruiter ContactsWes RobertsTechnical RecruiterNatural Data, Inc.Phone:214-378-9333FAX:214-378-9444wroberts@naturaldata.nethttp://www.naturaldata.net/

Shelly Herdman, Staffing ConsultantSearch Tech408-379-9824 ext 236fax: 408-379-4276email: shelly@searchtechinc.com

Guthoff & AssociatesJoanne Davis659 A Park Meadow Rd.Westerville, Ohio 43081614-794-9950 voice614-794-9951 faxpguthoff@cs.comwww.guthoffassociates.com

Jan SappingtonCorporate Image Group3145 Hickory Hill #204Memphis, TN 38115jan@corpimg.com(Phone): 800-823-5100(Fax): 901-360-0813

AND MORE…. Please email me.