ATM switching firm Newbridge Networks is aiming to replace traditional carrier circuit switches with ATMs in a joint venture with call control specialist Telehub Technologies.
Newbridge will invest $60 million in the joint venture named Terabridge Technologies. The company will marry Newbridge's range of ATM switches with Telehub's call processing and signaling system 7 (SS7) software for intelligent networks. Telehub will invest its 130-strong workforce and technology to the company.
The result will be the DVC 4000 platform to enable carriers to offer combined voice and data services over their networks. By replacing traditional narrow band switches with ATM based services carriers will save 50 per cent of the cost of managing the environment, while density would be improved by a ratio of 50:1, according to company chiefs.
Said Brian Jervis, executive vice president of Newbridge's switching products group, "One hundred frames of circuit switch now takes two frames for the same level of traffic."
He explained that narrowband switches comprise of three components: call control equipment, the switching fabric, plus peripherals. Terabridge will integrate the call control and switching fabric within Telehub's call processing platform, while the peripherals will be replaced by ATM switches. "We are taking these three components which are in separate boxes and distributing this across the network," he continued.
Alan Lutz, Newbridge's chief executive, likened the technology to the invasion of the mainframe world by client-server technology and says it will help turn the company around.
In February Newbridge admitted its fiscal third quarter results were "not so good news" as it missed analysts' expectations. In line with its profit warning, Newbridge recorded profit of $120.1 million, compared with a loss of$144.2 million last year. However its earnings per share of $0.17 was five cents less than analysts' expectations. The figure compares with an earnings per share of $0.07 last year.
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