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

To: Ibexx who wrote (15359)	7/26/1998 9:40:00 PM
From: Boplicity	Read Replies (3) \| Respond to of 77400

Lucent, Cisco, Others Suppliers to Benefit From AT&T-BT Venture New York, July 26 (Bloomberg) -- Lucent Technologies Inc., Cisco Systems Inc. and other suppliers of phone and data equipment are expected to benefit from plans by AT&T Corp. and British Telecommunications Plc to form a joint venture that will build an Internet-based global network. AT&T and BT, the No. 1 U.S. and British phone companies, said they will form a venture with assets of $3 billion and capital spending of another $1 billion a year. The companies also said they will invest a total of $1 billion, split equally between them, in U.S. businesses involved in high-technology and emerging communications markets. Equipment companies are racing to provide new voice and data equipment that allows phone companies to use new technologies, such as the Internet, to provide services at lower prices. AT&T and BT's current suppliers, including Lucent, Cisco, LM Ericsson, Northern Telecom Ltd., and General Electric Co. Plc's Marconi unit likely will get first crack at selling gear to the venture, analysts said. ''This is going to be a payday for the equipment vendors these guys use,'' said Jeffrey Kagan, president of Kagan Telecom Associates in Atlanta. ''The big winners in the wars between services providers are the equipment companies.'' 'Huge Opportunity' The new venture will develop a new global network, based on Internet technology, that will give businesses high-speed access to services like electronic commerce and international call centers. BT Chief Executive Sir Peter Bonfield said the venture's plans represent a ''huge opportunity'' for equipment suppliers. The bulk of the Internet-based global network will be constructed within 36 months, AT&T said. BT and AT&T's existing suppliers may have an edge in getting future contracts, BT said. Recently, Marconi won a 400 million pounds ($659 million) contract to supply equipment and services to BT for a high- capacity U.K. data network. The contract is part of BT's 2 billion pound project to upgrade its U.K. network to accommodate spiraling Internet, data and other multimedia traffic. BT has said investment that supports data services has grown to about 50 percent of its annual outlay, from below 5 percent in 1994. New Gear In the U.S., competition among suppliers is heating up. Lucent sued Cisco last month, claiming Cisco is illegally using Lucent's patented technologies in its computer-networking equipment. Murray Hill, New Jersey-based Lucent is the largest maker of phone equipment in North America. Cisco is the No. 1 maker of equipment used to link computers to the Internet. As sales to corporate customers slow, Cisco is looking to increase sales to phone companies and Internet service providers, who traditionally have bought Lucent equipment. Now long-distance companies and the regional Bells want new gear that lets them handle growing Internet traffic, and Cisco and Lucent are racing to supply it. San Jose, California-based Cisco sells 80 percent of the routers bought by large businesses, and its switches are used in the data networks of many of the largest long-distance providers, including AT&T. Northern Telecom, based in Canada, provides voice and data equipment. Ericsson and Nokia are two of Europe's largest equipment provider. Greg--->All smiles tonight.