Lucent Technologies Unveils New Technology to Facilitate Transition to Packet Switching

Strategic Insights -

Established phone companies are facing increasing pressure to move away from traditional analog switching techniques and adopt more efficient packet switching methods. This change is driven by the growing demand for broadband data networks and the need for phone companies to compete with newer rival networks. Lucent Technologies has announced products based on a new technology that would allow established phone companies to integrate packet switching into their existing networks.

Key Takeaways:

  • Lucent's new technology enables phone companies to use their existing voice switches as part of digital networks, reducing the need for a complete overhaul.
  • The technology is designed to facilitate the transition to packet switching, which is more efficient and flexible than traditional voice switching.
  • Data already accounts for more traffic than voice in some estimates, and the increased use of both data and voice is putting pressure on phone companies to move to packet switching.
  • BellSouth, a major phone company, is considering Lucent's new technology as an option for its future network development.
  • Lucent's equipment currently accounts for about 55% of BellSouth's switches, but the company has no packet switches.
  • The move to packet switching is driven by the surging demand for broadband data networks and the need to compete with newer rival networks.

Statistics:

  • Data traffic already accounts for more than 50% of total traffic in some estimates.
  • The demand for broadband data networks is increasing rapidly.
  • Lucent's new technology is designed to facilitate a transition to packet switching, which is expected to improve network efficiency and flexibility.
  • Lucent has 7,000 employees in metro Atlanta, with many working at the huge Norcross plant that produces high-speed fiber optics.
  • The company competes in the networking market against major players such as Nortel, Cisco, and 3Com.

Sources:

  • "Lucent Unveils New Bayonet Capabilities to Allow Existing Switches to work in a Packet Space Environment" (Lucent press release, date not specified)
  • Interview with Frank D'Amelio, Lucent vice president (Source: Lucent press release, date not specified)
  • "Lucent Opens Atlanta-Based Fiber Optic Plant Expansion" (Source: Lucent press release, date not specified)
  • BellSouth spokesman John Goldman (Source: Lucent press release, date not specified)