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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Nichols who wrote (26337)	6/16/1999 11:53:00 PM
From: MMW	Read Replies (1) \| Respond to of 77400

Sorry if someone has posted it already. DJ Qwest Close To Partnership With Cisco Systems - NYT NEW YORK (Dow Jones)--The New York Times reported that on Wednesday, Qwest was close to a partnership worth as much as $1 billion with Cisco Systems Inc., the leading maker of data communications gear. Under the agreement, Cisco will supply equipment while the two companies jointly develop advanced communications services based on Internet technology. The deal is structured so that Qwest pays only for equipment that is actually in use, executives close to the deal said. That could allow Qwest to better manage its cash flow by paying only for gear that is generating revenue rather than for truckloads of equipment that might not be put into use for weeks or months. The value of the deal could fluctuate depending on customers' acceptance of the new system and services, the executives added. The deal "gives us a partner that can help us on the technology side," said Lewis O. Wilks, president of Qwest's Internet unit. As Qwest moves from standard telephone networks to systems based on Internet technology, Wilks said, "Cisco is helping us architect it so that transition is seamless." Donald J. Listwin, the Cisco executive vice president in charge of selling products to big communications carriers, said, "This is a partnership that is going to enable Qwest to have really the first all-Internet-based network and is of substantial importance for us in that we are going to get the lion's share of the infrastructure business." Cisco may well get most of Qwest's spending on Internet gear, but Qwest has not said it will build an all-Internet-based network - something a rival long-distance carrier, Level 3 Communications Inc., has said it plans to do. Instead, Qwest has said it will use a range of protocols, including Internet technology but also other systems with an older pedigree. Wilks said the Qwest deal would not accelerate the demise of the other systems in Qwest's network, but added, "It continues to point to what we think is a technological trend."