Compaq, Ericsson Partner on Switching Computers

Compaq Computer Corp. and Swedish telecommunications company L.M. Ericsson Telephone Co. will jointly develop high-end switching computers for Ericsson's next-generation wireless and wireline networks.

Under an agreement between the two companies announced Tuesday, Ericsson will incorporate Compaq's high-end AlphaServers and Tru64 Unix technologies into future network switching products.

The deal is expected to be worth between US$500 million and $1 billion for Compaq over the next four years, according to the company.

Wednesday's partnership builds on a relationship between the two companies under which Compaq is supplying Ericsson with desktops, several technologies and high-end network services.

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