The plunge is not some new venture but Nortel’s stock price. Friday’s close has their stock down by 15% on a flat 2Q earnings report. The importance of this I will get to in a minute. But first here is the 5 day action last week. –

The consideration? Cisco and Nortel are infrastructure vendors. They have retail presence of course, but the main body of their income streams is selling to corporations. When corporations stop investing due to lessened consumer demand companies like Cisco and Nortel feel the draft. It will be interesting to compare Cisco’s 2Q results.

Now were I a smart Muni looking for a Wifi/Wimax supplier I would be tapping both these firms. They’re going to be hungry and will sweeten the pot and lower their prices. Just like the housing market now is the time to buy network infrastructure.

Linky

This article is pretty concise in what is going to be happening over the next couple of years for the Wireless scene. The critical graph is here –

Heck, just forget about cell phones altogether, added World Wide Web Consortium (W3C) director and One Web guru Tim Berners-Lee, also speaking at the conference. According to the Web pioneer, consumer technology is moving toward a world in which all devices will be covered in changeable pixels that can be used to present messages and content — sort of a Times Square-like scenario.

“So, the screen is getting less and less important,” he said.

For those unaware Berners-Lee for all intents and purposes is the father of the Web not Gore. But his observations have a larger portent than fancy screens. In order for the world to be viewing this new future will require at least one more turn at the wireless transport infrastructure. WiMax as good as it is, would not have the bandwidth for that level of video transport. Cisco and Nortel will love this.