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To: Zoltan! who wrote (47684)2/1/2001 10:02:57 AM
From: Curtis E. Bemis  Read Replies (1) | Respond to of 77400
 
UBS Warburg on new CSCO offerings-- (and Ironbridge goes belly up)

UBS Warburg - Wall Street Tech

________________________________________________________________________
ANALYSIS OF THE CURRENT CORE IP ROUTERS

Summary:
This morning Cisco officially announced general availability of their highly
anticipated new core router chassises as well as an OC-192c line card. The
company's press release indicates that at least 3 customers: Sprint, AOL,
and 360 Networks will be involved in the initial deployment of the new
products. We believe that Sprint is most likely the flagship customer.
During the Sprint analyst meeting last fall, the company mentioned that they
would be building out their network to OC-192 speeds and Sprint is not a
Juniper customer either. With today's news, Cisco becomes the 3rd vendor
following Juniper and Avici who have announced support for OC-192c line
cards. We have been writing that Cisco was targeting introduction of these
products during 1Q01, so today's news is basically in line with
expectations.

Highlights:
Two new core router chassises were introduced by Cisco (CSCO-$38.50-Buy)
today, a 10 slot version (GSR 12410) and a 16 slot version (GSR 12416) for
use with the new line cards. The two new line cards are an OC-192c (10Gb/s)
and a quad OC-48c line card. These new line cards involved the design of 9
new ASICs. Each line card also has on it a packet-forwarding engine capable
of forwarding packets at 25Mpps. In addition, Cisco is also offering
customers who have the older GSR 12016 an upgrade path to migrate the 80Gb/s
switching fabric to the new 320Gb/s fabric so that the older chassis can
utilize the new OC-192c line cards. However, the GSR 12008 and 12012 are not
upgradable for use with the new OC-192c line cards. We believe that some of
the new routers are deployed today and are running live traffic across them.
We also believe that customers have successfully performed the 320Gb/s
upgrade.

Cisco has been aggressively marketing their next generation core router with
OC-192c line card support since the late fall of 2000. As a review, Juniper
has been shipping a core router chassis with support for OC-192c line cards
since March-2000 and Avici announced OC-192c line card support three weeks
ago. During this time, Juniper (JNPR-$114.25-Buy) has been able to announce
deployments of their OC-192c line cards and M160 chassis into major networks
including: UUNET, Cable & Wireless, Qwest, Genuity, MFN, and Star21
(Germany). Avici (AVCI-$35.75-Buy) has also announced testing of their
OC-192c line card at AT&T.

Today's product news provides Cisco with one opportunity of stemming further
market share losses to Juniper, now that the key 10Gb/s product support is
available on the GSR. Announcement by Cisco, the market leader, of a key
product feature (10Gb/s) that lagged competitor's offerings, further product feature (10Gb/s) that lagged competitor's offerings, further
validates the high barriers to entry that exist for any one vendor to enter
the core router market. As further proof of the high barriers to entry,
IronBridge Networks, another privately held startup which was working on a
core router was reported by the Boston Globe to have laid off all but 20
employees and was looking to sell its intellectual property.

In terms of what we continue to look for in new products, we expect the next
router from Juniper to be a M320, which would effectively double the
capacity for OC-192c line card support. We also expect this platform to form
a basis for future upgrades to terabit class routing. With Cisco's
introduction of the GSR 12400 series core routers, Juniper will trail both
Avici and Cisco in total number of OC-192c line cards supported. We also
expect to hear of additional lower-speed line card support such as DS-3 and
gigabit ethernet from Avici during 1H01. In a related press release today,
Qwest announced that all three vendors: Cisco, Juniper and Avici were being
evaluated for Terabit router solutions. To date, Avici remains the only
publicly announced vendor field
trialing a Terabit router with Qwest. As mentioned during their quarterly
conference call 2 weeks ago, the expectation was that it would require 4-6
months of testing before Qwest would make any conclusions on the product.
Analysis:
Current Core IP Routers offered Today

CSCO12410 CSCO 12416 JNPR M160 AVCI TSR
Switch Fabric 200Gb/s 320Gb/s 160Gb/s 400GB/s
Slots 10 16 8 40
PktFwd(per slot)25Mpps 25Mpps 20Mpps 25Mpps



Maximum Port Configurations per Chassis

CSCO 12410 CSCO 12416 JNPR M160 AVCI TSR
OC-192c POS 9 15 8 20
OC-48c POS 36 60 32 80
OC-12c POS 36 60 128 160
OC-3c POS 144 240 128 160
DS-3 108 180 128 -
T-1 - - 128 -
Chann. DS-3 1,512 T1's 15,120 T1's 896 T1's -
Chann. OC-12 108 DS-3's 180 DS-3's 384 DS-3's -
Gigabit Ether 9 15 64 -
Fast Ethernet 72 120 128 -
________________________________________________________________________



To: Zoltan! who wrote (47684)2/1/2001 10:27:54 AM
From: Curtis E. Bemis  Respond to of 77400
 
AT&T uses Cisco VOIP Solutions--

att.com

AT&T Launches Voice Over IP Business Portfolio
Managed VoIP Services Integrate Easily into Enterprise Networks

VIEW THE PRESENTATION

WASHINGTON – Today at ComNet 2001, AT&T announced its first voice over IP (VoIP) retail services for business, available immediately with two of AT&T’s managed router services. The new VoIP option allows businesses to combine voice, fax and data traffic on a single integrated IP connection, managed by AT&T.

AT&T’s VoIP offer was debuted as part of AT&T’s increasing focus on enterprise networking services. AT&T also launched OC-48 dedicated Internet access, a new provider-class hosting bundle, two new Internet data centers, and Virtual Communication Services, a managed application for extending PBX features to teleworkers.

AT&T plans to add VoIP to its entire portfolio of managed network services over the coming year. Available now for AT&T Managed Internet Service (MIS) and Managed Router Service (MRS), VoIP calling will next be added to AT&T Managed Data Network Services, a fully managed global service that bundles transport, access and router management.

Jeff Pulver, CEO of pulver.com and long-time champion of VoIP opportunities, sees AT&T’s debut as a watershed. “Voice over IP is no longer just a great idea. When companies expert at voice networking like AT&T get involved, you know it’s grown up to be a great reality. The difference lies in enterprise-class engineering and delivery, which generate the quality that enterprises require.”

Customers agree. “AT&T achieved all our objectives during our VoIP trial," said Mark Huang, WAN project manager at Tower Automotive, where he tested MRS with VoIP. "We found that we saved a lot of money, and the technology was very sound and workable. There was no loss in quality in our voice service, and there was also no loss of convenience for our users.”

Managed Internet Service with VoIP

MIS with VoIP provides high-quality voice calling to practically anywhere in the world, plus flat rate “all-you-can-eat” monthly pricing for calls within the U.S. By using the AT&T IP backbone with quality of service (QoS) provisions on the access paths, MIS with VoIP is a highly efficient use of bandwidth.

NCR was the first trial customer for AT&T MIS with VoIP. Managers were pleased with the voice quality, and stated that flat-rate pay-by-channel pricing between NCR locations made VoIP both cost-effective and predictable.

For the trial, AT&T installed MIS with T1 connections and routers at NCR locations in Maryland, Ohio and Georgia. The routers were pre-configured to prioritize voice traffic with QoS, and engineered to use the public switched telecommunications network (PSTN) as automatic backup.

Because VoIP is being managed as an additional feature for AT&T MIS service, billing simply appears on the MIS invoice. Flat-rate pricing for U.S. calls includes credit incentives for usage between VoIP-enabled sites. Pricing for international calls is based on usage.

Managed Router Service with VoIP

MRS with VoIP leverages AT&T’s award-winning Frame Relay service to connect VoIP-enabled locations in more than 40 countries. Unrestricted voice and fax calling will be available later in 2001. Pricing for MRS with VoIP includes a flat monthly monitoring cost and a monthly Permanent Virtual Circuit cost.

Tower Automotive gave top grades to MRS with VoIP during a three-month trial connecting sites in the U.S. and Mexico.

“I would recommend this service to other companies,” said Mark Huang, Tower Automotive. “AT&T demonstrated very professional project management during our trial. They showed very strong engineering know-how. I’m very fortunate to have worked with top-notch

engineers on this project. The project has provided us with a blueprint for our future expansion using this technology.”

Dynamic Architecture

AT&T Labs worked with multiple vendors to create an architecture for smooth connectivity between VoIP-enabled routers, AT&T’s OC-48/OC-192 IP backbone, and the public switched telephone network, helping to ensure speed, reliability and voice quality.

Currently, the VoIP offers use Cisco Systems' 2600 and 3600 multi-service routers. Digital voice and fax signals are converted from the business customer’s corporate PBX into IP packets which are then transported over AT&T’s IP network. Business-grade voice quality is achieved through special queuing features which speed voice packets over the access path, traditionally the bottleneck for voice/data IP integration.

The architecture optimizes the access bandwidth available, dynamically sharing it between voice and data applications. The result is simpler network management and improved return on network investment.

Managed VoIP offers for both MIS and MRS use the H.323 protocol with Fast Connect capability. H.323 is currently supported by the majority of VoIP technology providers, and facilitates future integration with Signaling System 7. AT&T will also support the Session Initiation Protocol (SIP) standard in an upcoming release, as the standard becomes more generally adopted.

“Enterprise VPNs with integrated services deliver the power of IP to businesses,” said Anne Chow, Vice President, AT&T Managed Application Services. “By handling voice over IP as a quality application and adding it to our managed application services portfolio, we present VoIP to our enterprise customers not as a puzzle to solve, but as accomplished fact. With VoIP we move our customers’ enterprise VPNs to the next level.”

AT&T is engaged in a wide variety of VoIP initiatives. In 2000, AT&T purchased a 39 percent voting interest in Net2Phone to help develop a new generation of IP-based communications services. AT&T and Net2Phone are working closely on a number of initiatives that span several business units, leveraging strengths between the companies to create next generation telecommunications products and services.

For more information about AT&T’s IP services for business, visit www.att.com/ipservices.

About AT&T Corp.

AT&T Corp. (www.att.com) is among the world’s premier voice, video and data communications companies. With annual revenues of more than $62 billion and 160,000 employees, AT&T provides services to customers worldwide. Backed by the research and development capabilities of AT&T Labs, the company runs the world’s largest, most sophisticated communications network and has one of the largest digital wireless networks in North America. The company is a leading supplier of data and Internet services for businesses and offers outsourcing, consulting and networking-integration to large businesses. Through its recent cable acquisitions, AT&T delivers broadband video, voice and data services to customers throughout the United States. Internationally, Concert, the AT&T/BT Global Venture, serves the communications needs of multinational companies and international carriers worldwide.

This press release contains ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements regarding the Company's plans, intentions and expectations. Such statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. These risks include increased levels of competition, shortages of cellular handsets and other key equipment, restrictions on the Company’s ability to finance its growth and other factors. A more extensive discussion of the risk factors that could impact these areas and the Company's overall business and financial performance can be found in the Company's reports filed with the Securities and Exchange Commission. Given these concerns, investors and analysts should not place undue reliance on forward-looking statements.

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