But both incumbents and new entrants were unenthusiastic about housing switching equipment in newcomers' buildings.
The deal would transform the relatively primitive Soviet telephone network into one utilizing high technology fiber-optic cable and switching equipment.
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Juniper and several others are making inroads, but Cisco is still the largest provider of routers and switching equipment by a gargantuan margin.
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Cisco has said its proposed participation in the Chinese city's project was to provide routing and switching equipment, not cameras or video-surveillance software.
From the housing of simple switching equipment, the market has rapidly evolved into the provision of sophisticated services based in state-of-the-art wired buildings.
After building its business on making switching equipment that forms the backbone of phone and computer networks, Huawei is trying to become a business and consumer brand.
Since the prohibition on sales of some switching equipment was lifted six months ago, however, only a handful of small deals have occurred, involving the export of computerized exchanges to Eastern Europe.
But newspapers and magazines require different printing equipment, so switching over is costly.
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His first venture was selling medical equipment, before switching to trading precious metals, as well as wine, when demand for that commodity boomed in China.
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Tellabs' equipment was designed for an era of circuit switching.
Roth counters that the deal catapults Nortel ahead of its chief competitors -- number one phone equipment maker Lucent Technologies, and Cisco Systems, the largest Internet switching gear manufacturer.
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