Lehman sees a boost for Juniper Networks (JNPR) and Ciena (CIEN).
Analyst Steven Levy says on May 23, a formal request for a pricing/proposal (RFP) for a long-awaited U.S. government project was released. Levy expects $800 million to $900 million spent over two years for initial deployment including equipment and other products. He notes the request for proposal included four subcontracts that should each have one supplier; Levy believes the likely leaders are: Ciena, Nortel, Cisco, Juniper, and Lucent.
Levy expects trials this summer, and initial equipment vendor revenues could emerge in early 2004, or maybe late 2003. He believes the biggest impact is on Ciena and Juniper as the opportunities are material.