Newbridge, AT&T See 'Significant' Potential In Deal
(from NN thread)
Dow Jones Newswires -- May 5, 1998
______________________________________________________________________
Newbridge, AT&T See 'Significant' Potential In Deal
By Scott Adams
TORONTO (Dow Jones)--AT&T Corp. (T) and Newbridge Networks Corp. (NN) see much potential in the AT&T Managed Bandwidth Service deal announced earlier Tuesday,
but won't elaborate on how much business the new deal is expected to generate for either
company.
As reported earlier Tuesday, AT&T Corp.'s AT&T Solutions has introduced AT&T
Managed Bandwidth Service, a new vehicle that will provide global network services to
corporate customers using Newbridge's family of equipment and software. There is no limit
on how long the arrangement can last.
Asked how much revenue Managed Bandwidth Service may generate, AT&T Managed
Network Solution services director Bill Callahan told Dow Jones he can't disclose such
information.
Callahan said the service is targetting the biggest 3,000 companies in the world, which
typically have hundreds to tens of thousands of sites in their networks. "We would be
providing this service to every one of those locations," Callahan said. "If you extrapolate the
numbers, you see this is fairly significant."
"This is very significant for Newbridge," added Terence Matthews, Newbridge's chairman
and chief executive.
AT&T Solutions is the arm of AT&T Corp. that provides network consulting services to
corporate customers. Within that arm is AT&T Managed Network Solutions, or MNS,
which manages networks for corporations. AT&T Managed Bandwidth Service is part of
MNS.
Newbridge will provide an end-to-end platform for voice, data, video and image using its
products. Callahan said the service will be generally available by summer.
"We've had a lot of interest from a lot of different customers," Callahan said. "We have some
active engagements right now so we don't expect this to take a long time to ramp up."
Matthews said he expect this latest arrangement to improve Newbridge's already
"long-standing relationship" with AT&T Corp. |
