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Technology Stocks : Westell WSTL
WSTL 6.420-0.3%Feb 3 3:57 PM EST

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To: James Ratzliff who wrote (9807)3/19/1998 7:52:00 PM
From: Skiawal  Read Replies (2) of 21342
 
Alcatel introduces more powerful Internet enabler

HANOVER, March 18 (Reuters) - French telecommunications equipment maker Alcatel said on Wednesday it was introducing a new range of equipment to provide improved data switching and Internet access.

At a news conference ahead of the CeBIT technology trade fair which opens later on Wednesday, the subsidiary of Alcatel Alsthom<CGEP.PA><ALA.N> said it planned to launch a range of products for combined voice and data networks.

It provided no launch date details or financial information.

Jozef Cornu, President and Chief Operating Officer of Alcatel, said the products would serve the growing need for the integration of fixed and mobile phone networks.

"The growth of voice and particularly data traffic creates the need for a new class of backbone switches based on ATM (Asynchronous Transfer Mode) technology. The Alcatel 1000 BX which was announced today has a unique combination of features," Cornu said in a statement.

"The 1000 BX has all the functionalities of a data backbone switch with multiprotocol interfaces," the statement said.

The product will allow new functions to be added later.

Cornu said in his presentation that voice traffic was moving more and more to mobile networks, and by 2000 mobile and fixed networks would handle roughly equal amounts.

Cornu said Alcatel was building up its Asynchronous Digital Subscriber Line (ADSL) technology to boost Internet access speeds. ADSL developments allow high capacity networks to be delivered over existing copper wire.

According to Cornu, ADSL will -

Increase Internet download speeds by a factor of 10 to 100 and will spectacularly improve user friendliness.

Boost overall Internet traffic significantly.

Lead to the appearance of services which require more interactivity, like videoconferencing and games.

See the emergence of new video websites.

Cornu said Alcatel expected Internet business to increase exponentially, with 10 percent traffic growth monthly, and the number of users worldwide doubling each year.

Parent company Alcatel Alsthom's shares have been strong recently, partly on hopes for ADSL technology. The company announces its results on Thursday. Analysts expect 1997 net income to rise strongly to 4.6 billion francs ($755 million) from 2.7 billion in 1996, despite a 500 million franc risk provision for the Asian crisis.

Neil Winton 44 171 542 7975 neil@jinks.demon.co.uk ($ = 6.095 French Francs)

07:30 03-18-98
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