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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Martin Goldenberg who wrote (3300)	9/10/1999 8:51:00 AM
From: Stocker	Respond to of 14638

Telia Sticks to Cisco Data Equipment, Rejects Newspaper Report Bloomberg News September 9, 1999, 4:13 a.m. PT Telia Sticks to Cisco Data Equipment, Rejects Newspaper Report Stockholm, Sept. 9 (Bloomberg) -- Telia AB, Sweden's top phone company, said it will honor its data-networking contract with Cisco Systems Inc., rejecting a Swedish newspaper report that Telia canceled the order because the world's No. 1 maker of Internet equipment couldn't deliver on time. ``We'll continue to work with Cisco as network operations are more and more driven toward data,' said Jan Morten Ruud, head of Telia datacom and Internet operations, in an interview. State-owned Telia, which is merging with Norway's Telenor AS, needs a new network that can carry more data as Internet use is expanding rapidly. Europe's market for Internet services is seen growing 69 percent a year, according to International Data Corp. Half of Sweden's 12 to 79-year-olds already surf the web. The Telia order, announced in February, is important to Cisco as the company wants to get into telecommunications and compete with the likes of Nortel Networks Corp., North America's second-largest phone equipment maker, and Sweden's Ericsson AB. ``We were something of a first client for Cisco and they couldn't keep the time schedule,' Marianne Nivert, head of Telia networks, told Dagens Industri newspaper. Neither Nivert nor Cisco were immediately available to comment. At the same time, Nortel said yesterday it had won an order to supply data-networking gear to Telia's new national network based on the Internet Protocol, the communications system that routes most data traffic on corporate networks and the Internet. Ruud denied that the Nortel order is a substitution for the contract with Cisco. ``We'll work with both of them as well as our other suppliers,' he said. Cisco's contract from Telia was worth 500 million kronor ($62 million), while the Nortel order amounted to 400 million kronor, according to DI. Ruud said they could be worth more or less depending on how much sales they generate. Telia plans to invest 1.4 billion kronor in broadband networks next year and spend 5 billion kronor through 2001 to boost its fiber optic network in Europe and to North America. More News: NT