Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (9862)	2/26/1999 1:40:00 AM
From: pat mudge	Read Replies (3) \| Respond to of 18016

What can you say. . . <<< COMPUTING: Cisco in Swedish telecoms project By Alan Cane Cisco Systems, the world's biggest data networking company, is to build a national communications network for Telia, Sweden's national operator, in a ground-breaking deal which could have profound consequences for traditional telecommunications equipment manufacturers. It will be Cisco's biggest breakthrough in the $200bn a year market for large scale telecoms equipment, placing the US company into conflict with full service suppliers such as Lucent of the US and Nortel Networks of Canada. The new network, based on internet technology, will be supplied as a "turnkey" project (complete with hardware, software and all supporting systems). Cisco will also be responsible for support, training and consultancy. The company more commonly provides components such as hubs and routers. The new system, which is expected to be delivered in the third quarter of this year, is being seen as its first opportunity to gain experience of building a full scale network. In a further departure from conventional practice, Telia will sell and lease back its existing network to Cisco while the new network is under construction. One industry observer said: "This is Cisco's pitch for credibility in the telecoms big league." The cost to Telia, some SKr500m ($60m) over three years, is comparatively small, reflecting the unusual nature of the deal and the relatively low cost of modern communications equipment. Telecoms operators are struggling to upgrade their networks to deal with the huge volumes of data they are being asked to carry, chiefly because of the growth of the internet and other on-line services. More data than voice traffic is now being carried on many networks. Traditional telecom manufacturers, however, have little experience of data communications technologies. A battle for the future of the world's networks has been developing between the older manufacturing giants like Lucent, Nortel and Alcatel and the new, computer-based companies like Cisco and 3Com. Lucent and Nortel have recently acquired Ascend and Bay Networks respectively to remedy their technological deficiencies. The chief benefits to Telia of the deal will be freedom to concentrate on developing innovative services without the need to concern itself with technological choices. In addition the lease-back arrangement will provide it with finance for the new network. It will also retain management control over the network together with maintenance and monitoring. >>>>>