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Computer and phone giants set for battle

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As computer networks and telephone networks merge, a whole new and potentially vast market is emerging over which the giants of each industry are readying to battle.

Ranged on one side are the likes of Canada's Nortel Networks, with decades of experience selling switched technology to the world's telephone companies. On the other are companies such as US-based Cisco systems, a comparative newcomer that has built its reputation on selling computer networks to businesses.

Computers communicate by sending data in packets (known as Internet protocol or IP), which makes much better use of available line capacity.

It has been clear for some time that the networks of the future increasingly will be based on this technology.

Instead of differentiating between data, voice and video, it will all be the same; chopped up into digital packets, transferred down the line and reassembled the other end.

These are referred to in the new telecoms jargon as 'unified networks' and everyone is claiming the high ground in their ability to deliver them.

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