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March 5, 1996

SIEMENS TAKES NEWBRIDGE ASYNCHRONOUS SWITCHES OEM

By CBR Staff Writer

The Public Communication Networks Group of Siemens AG missed the boat when it comes to doing its own Asynchronous Transfer Mode switches, and to plug the gap, it has gone to Newbridge Networks Corp of Kanata, Ontario. Outlining the OEM agreement, under which it plans to take Newbridge’s Asynchronous Mode switches, it says it will be pitching the combined product line at new telephone companies entering the market after deregulation, as well as existing carriers. No equity will be exchanged under the terms of the deal, but both companies are planning to offer the full range of each other’s products under the banners of their existing product lines, ATMnet from Newbridge and the Siemens EWSXpress. Siemens executive director Wolf Rachlitz admitted that Siemens did not have the expertise to bring its own access products to market in time for the new carriers, but said that through the Newbridge alliance, the companies could now offer a complete broadband network service covering the entire spectrum from user to core network.

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