Cisco and Corning in optical pact
November 14, 2000 09:36 AM PT
by Rex Crum
While instability has recently rocked the fiber-optic market, two of the largest forces in the space today announced a
deal to work together on new optical Internet equipment.
Cisco Systems (CSCO) and Corning (GLW) revealed plans to build new optical products for their service provider
customers. Under terms of the non-exclusive agreement, Corning will bundle its fiber-optic equipment with
networking gear made by Cisco. The new products will be based on Internet Protocol, or IP, technology, which
sends data across networks in small digital packets.
The two companies will set up teams to build the optical gear. Officials with Corning said the new equipment would
let Internet service providers reduce costs and product installation time.
The deal represents two companies trying to branch out from traditional product spaces. Corning invented optical
fiber in the 1970s and is set on finding new markets for its optical products. Cisco, which pioneered the
Internet-routing and switching business, has been exploring new business opportunities in the optical space.
Financial terms and the length of the deal were not disclosed.
The announcement sent Corning shares up 9 percent, or $5.50, to $64.50, while Cisco shares gained 3.7 percent, or
$1.88, to $52.25, in midafternoon trading. |
