To: Boplicity who wrote (23574 ) 3/10/1999 11:32:00 AM From: bill c. Read Replies (1) | Respond to of 77400
Greg, AT&T said the same thing about DWDM equipment. RESEARCH TRIANGLE PARK, N.C. (CBS.MW) -- Nortel Networks said Wednesday that AT&T is considering it as a potential supplier of gear to modernize Ma Bell's global network. CBS MarketWatch Columns Updated: 3/10/99 10:37:06 AM ET While no decision has been made yet, an agreement could mean big bucks for Nortel (NT). AT&T (T) is planning to upgrade its traditional circuit-based networks to more efficient and Internet friendly packet-switching technology, but such a move will be exorbitant. Nortel's DMS-250 system, which AT&T is evaluating, would act as a bridge between circuit and packet-switching technologies, allowing the long-distance carrier more time to make the switch and avoid a huge upfront expense. Nortel equipment rivals such as Lucent Technologies (LU), spun off by AT&T a few years ago, and hard-charging Cisco Systems (CSCO), are also seeking a piece of the action. AT&T, for its part, has said all along that it intends to use several suppliers so it won't become too reliant on one company. "As a part of our continuing work in support of our multi-vendor network, we are evaluating the Nortel Networks DMS-250 for potential use as we evolve our long distance network from circuit- to packet-based switching," said Dan Sheinbein, an AT&T vice president. "The DMS platform's current capabilities and planned evolution path make it a good choice for evaluation for use in the AT&T network." See press release. Demand for Internet-based high-speed data networks is growing rapidly as more companies flock to do business on the net. Packet-switched networks can carry far more traffic at greater speeds and at a lower cost. Shares of AT&T fell 5/16 to 85 1/4, while Nortel gained 1 13/16 to 59 13/16. cbs.marketwatch.com