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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 75.46-3.7%3:59 PM EST

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To: Peppe who wrote (14292)5/27/1998 4:24:00 PM
From: StockMan  Read Replies (1) of 77400
 
A shot across Cisco's bow. Cisco wont be able to run out and buy a company that produces a switch like this.

Soon this big oil tanker cisco will take on more water....

Lucent Technologies Introduces Revolutionary IP Switch And Breakthrough Portfolio of IP Products For Service Provider Networks

MCI Is First To Evaluate Lucent's PacketStar IP Switch

MURRAY HILL, N.J., May 27 -- Lucent Technologies today introduced
the industry's most reliable and advanced portfolio of Internet Protocol
(IP)-based data network products for service providers, revolutionizing the way
data, voice and video are handled in public networks. In addition, the portfolio
makes possible the delivery of new premium data services while slashing
provisioning and maintenance costs by up to 40 percent.

''There is a network revolution at hand and we intend to lead it,'' said Rich
McGinn, chairman and CEO, Lucent Technologies. ''The issue for our customers is
how to offer the same quality of service in the data world as we do in the voice
world -- service that is rich in features and reliability and that can generate
new revenues. Lucent understands better than anyone how the data and voice
worlds must work together and we are developing the next-generation
architectures to lead this revolution.''

''We are meeting this challenge by offering an integrated suite of products that
revolutionize the way new networks handle data while gracefully evolving
existing voice networks to the IP world,'' said Bill O'Shea, president, Lucent
Technologies Data Networking Systems. ''And as service providers expect from
Lucent, we will deliver unparalleled reliability, the most advanced Bell Labs
technology and ease of management and operations with unmatched professional
services and support.''

The IP portfolio is led by:
-- The Lucent Technologies PacketStar(TM) IP Switch -- a next generation
intelligent Layer 3/Layer 4 wide area network routing switch which works with
today's installed base of traditional routers -- yet goes far beyond their
performance by managing data in a way that accommodates different levels of
customer needs from casual Internet users to businesses with critical data
applications. For the first time, service providers will be able to guarantee
and price multiple tiers of quality from low cost to premium service.

''The PacketStar IP Switch is truly a revolutionary switch,'' O'Shea said. ''For
the first time, one system combines the superior bandwidth and speed to help
break through Internet data bottlenecks with intelligent traffic management
capabilities to guarantee multiple tiers of service.''

''These capabilities are critical to delivering large-scale telephony and fax
services over IP networks, data and video over IP and virtual private networks.
For the next-generation applications that customers demand, the carrier-class
PacketStar IP Switch is essential,'' said Carly Fiorina, president of Lucent's
Global Service Provider Business.

MCI To Evaluate

The PacketStar IP Switch will be tested and evaluated by MCI in June as part of
a plan to upgrade their Internet backbone.

''MCI carries hundreds of terabytes of traffic per week,'' said Vinton Cerf,
MCI's senior vice president, Internet Architecture and Engineering, and one of
the founders of the Internet. ''We think Lucent has shown us a novel design that
is an improvement over existing routing switch technology. We look forward to
working with this new product to determine its applicability to our Internet
services.''

The PacketStar IP Switch, which interoperates with Lucent's complete access
products portfolio, delivers the industry's highest capacity -- up to 32 million
packets per second of system throughput at full wire speed -- while offering 128
gigabits per second (Gbps) of total backplane capacity with a natural evolution
in scale to Terabit aggregate switching rates.

Using innovative architectures and algorithms for traffic queueing and
scheduling, service providers can maximize new revenues by allocating network
resources to deliver service levels scaleable to millions of users.

Developed by Bell Labs in 12 months and powered by several patent-pending
technology advances, the PacketStar IP Switch enables network operators for the
first time to create ''virtual leased lines'' down to departmental desk tops --
guaranteeing bandwidth and explicit levels of service. This is critical in the
delivery of advanced applications like voice-over-IP telephony and Virtual
Private Networks (VPNs).

The PacketStar IP Switch supports both IP over SONET/SDH and IP over ATM
applications and is expected to be generally available in the third quarter of
this year.

Revolutionary New Class of Product
-- The Lucent Technologies PathStar(TM) Access Server is a revolutionary new
class of product designed specifically to enable network operators to offer
low-cost, reliable local and long-distance voice and data services over IP
networks including the Internet. Priced at half the cost of the multiple
products needed to perform the same functions today, the PathStar Access Server
acts as a central office switch- router for the IP world.

The PathStar Access Server, at about $300 per line and half the cost in a
typical configuration, is expected to be going into customer trial later this
year. It is expected to be generally available in the first quarter of 1999.

''What makes this product revolutionary is that it is an integrated routing IP
platform that services most types of traffic -- from POTS and ISDN to xDSL --
and delivers on the features customers demand, from billing to directory
services,'' O'Shea said.

The PathStar Access Server offers the industry's most complete set of integrated
telephony features that subscribers demand, including billing, call waiting,
call forwarding, operator assistance and a standard interface to directory
services systems.

It is the only IP-based access server that offers direct access to the existing
standard copper wire-based local loop -- eliminating today's two-step dialing.

The PathStar Access Server is an effective solution for carriers expanding into
new areas, for competitive entrants building networks based on IP architectures,
for service providers starved for new data services capacity or for Internet
Service Providers offering standards-based Internet Telephony services.

It also provides full access to the existing circuit switched public voice
network. Subscribers may reach any telephone anywhere around the corner or
around the world, whether it is a packet phone, a standard telephone, a PC with
phone capabilities, on the public network, a corporate intranet or the global
Internet.

''The PathStar Access Server is built from ultra-reliable access technology used
with the 5ESS(R)-2000 AnyMedia Switch,'' O'Shea said. ''At the same time,
PathStar's routing capability delivers highly scaleable, high-capacity access to
the Internet, allowing the integration of voice and data into a single, low-cost
access server at the edge of the network.''

Bridging the Voice and Data Worlds

The Lucent Technologies PacketStar Gateway Solution bridges the voice and data
worlds, efficiently moving voice traffic and voice related services over
networks that were designed for data. This solution consists of a voice gateway,
which turns voice signals into packets for IP or ATM networks; a signaling
gateway, which provides signaling and routing information needed to carry those
packets through the network; and a feature server which serves as a platform for
the development of advanced network services.

The PacketStar Gateway Solution will allow new and existing network operators to
provide an array of local, tandem and toll voice network services and emerging
data network services on IP and ATM networks. And to simplify network
management, the solution allows traditional service providers to consolidate
their existing circuit-based tandem and toll networks into one broadband packet
network.

''Lucent is bringing its hundred plus years of experience in networking
signaling and routing to the data world,'' O'Shea said. ''This reliable solution
will reduce provisioning and maintenance costs by up to 40 percent over a
typical voice network. It's a graceful evolution for a service provider with an
embedded network and a great way for a new entrant to assure a network with the
best quality.''

The solution will deliver density that is up to 30 times what competitive
solutions can currently deliver. In a central office where space is at a
premium, this huge capacity advantage means fewer boxes will have to be
installed, with greater reliability and greatly reduced complexity.

The PacketStar Gateway solution is expected be available for customer trials in
the fourth quarter and is expected to be available in the first quarter of 1999.

Completing the IP Portfolio

Additionally, Lucent also announced new functionality on its Portmaster(TM) 4
remote IP access technology. Unveiled in March, the Portmaster 4 offers
carrier-class capacity and service flexibility, providing up to 4,320 dial-up IP
connections in a single rack and supporting any service on any port at any time.
Lucent will integrate Portmaster 4 technology directly into the 5ESS switch,
allowing service providers to offer V.90 modem and ISDN services wholesale to
ISPs. This brings IP capability onto the edge 5ESS AnyMedia switch and allows
service providers to offload data from congested inter-office circuits and route
traffic over packet networks. This also reduces costs to Internet Service
Providers by eliminating multiple ISDN trunks. The new solution will be
available for customer trials in July, with general availability expected in the
third quarter of this year.

As further proof of the breadth of Lucent's industry-leading IP portfolio for
service providers, Lucent Technologies recently introduced the latest release of
its Internet Telephony Server for Service Providers, now branded as the
PacketStar ITS (Internet Telephony Server). Lucent's PacketStar(TM) ITS-SP 2.0
allows service providers to offer customers high-quality voice and fax
transmission over IP networks using analog phones, faxes and PCs.

The PacketStar ITS-SP 2.0, combined with other components, including the ITS
Service Access Manager and the ITS Administrative Manager, enables service
providers to manage and scale their networks to support multiple gateways and
servers across the public network. The ITS-SAM performs the H.323 gatekeeper
function, providing authentication of users attempting to place calls,
administration of gateways across zones and call set-up, and enables the ITS-SP
2.0 to scale as service providers expand their networks. The ITS-AM provides
web-based network management.

PacketStar ITS is generally available and used by customers in North America and
Europe.

Unprecedented Bandwidth Management

And finally, earlier this year Lucent introduced a new type of network element
for managing IP traffic and other bandwidth requirements, the ultra-reliable
WaveStar(TM) Bandwidth Manager.

The WaveStar Bandwidth Manager integrates all access and transport facilities
into a single network node for service providers. Self-healing ring interfaces
within the system integrate traditionally separate network elements such as IP
and ATM switches and routers, add/drop multiplexers, and digital cross connect
systems. This consolidation allows service provider savings of up to 60 percent
in equipment costs and up to 85 percent in space requirements.

WaveStar Bandwidth Manager is going into service with two customers, Tyco
Submarine Systems, Ltd., formerly AT&T Submarine Systems, and the CTR Group,
Ltd., a global undersea optical networking company.

And unifying operations support for these breakthough IP products will be a
suite of integrated management software systems for service providers that are a
part of the OneVision(TM) Network Management family of products.

''This comprehensive list of new and enhanced IP solutions for service providers
is proof positive that carriers are demanding a new class of communications
networking and we are responding,'' Fiorina said. ''Whether for revolutionary
business opportunities or evolutionary networks, Lucent solutions deliver
reliability, speed, capacity, control and manageability.''

Lucent will be showing these and other service provider solutions in Booth 6639
at SuperComm, June 9-11. Lucent Technologies designs, builds and delivers a wide
range of public and private networks, communications systems and software, data
networking systems, business telephone systems and microelectronics components.
Bell Labs is the research and development arm for the company. More information
about Lucent Technologies, headquartered in Murray Hill, NJ, is available on its
Web site at lucent.com.

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