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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Jeff Jordan who wrote (55752)	10/10/1998 2:27:00 PM
From: H.A.M.	Read Replies (1) \| Respond to of 61433

Cisco, Alcatel Will Target Corporate Rather Than Telecom Market San Jose, California, Oct. 9 (Bloomberg) -- Cisco Systems Inc., the top computer-networking company, said it will focus its partnership with Alcatel SA on the corporate market rather than the telecommunications market. Paris-based Alcatel, the world's fourth-largest maker of telephone equipment, said last month it will develop new Internet equipment with Cisco rival Ascend Communications Inc. The new products will be sold to telecommunication carriers and are expected in the second half of 1999. Cisco, which gets most of its revenue from the corporate market, is pushing into the carrier market to maintain its torrid growth rate. The company now has some carrier products, yet phone companies and Internet service providers have been choosing Ascend's gear for the powerful computer switches used in the center, or core, or their data communication networks. ''Cisco needs partners because they don't have a good story in the core,'' said Craig Johnson, an analyst with market researcher Pita Group in Portland, Oregon. Alcatel sells networking products for the corporate market made by Cisco and Xylan Corp. Alcatel officials also have said they are in talks to acquire other U.S. networking companies. A likely acquisition target is closely held Packet Engines Inc., which makes speedy computer switches for the corporate market and has offices in France. In the wake of Alcatel's recent moves, Cisco is not likely to develop products with Alcatel for the carrier market. ''Cisco is focusing its partnership activities with Alcatel in the enterprise market, where they remain one of our largest resellers in Europe,'' company spokesman Doug Wills said. 21:04:49 10/09/1998