Ericsson is a Swedish multinational networking and telecommunications company headquartered in Stockholm. The company offers services and infrastructure in information and communications technology for telecommunications operators, traditional telecommunications and Internet Protocol networking equipment and fixed broadband and business support services, cable television, IPTV, video systems, an extensive services operation. Ericsson had 35% market share in the 2G/3G/4G mobile network infrastructure market in 2012; the company was founded in 1876 by Lars Magnus Ericsson. The company operates in around 180 countries. Ericsson holds over 42,000 granted patents as of December 2016, including many in wireless communications. Lars Magnus Ericsson began his association with telephones in his youth as an instrument maker, he worked for a firm. In 1876, at the age of 30, he started a telegraph repair shop with help from his friend Carl Johan Andersson in central Stockholm and repaired foreign-made telephones.
In 1878 Ericsson began selling his own telephone equipment. His telephones were not technically innovative. In 1878 he made an agreement to supply telephones and switchboards to Sweden's first telecommunications operating company, Stockholms Allmänna Telefonaktiebolag. In 1878, local telephone importer Numa Peterson hired Ericsson to adjust some telephones from the Bell Telephone Company, he analyzed the technology. He was familiar with Bell and Siemens Halske telephones through his firm's repair work for Telegrafverket and Swedish State Railways, he improved these designs to produce a higher-quality instrument to be used by new telephone companies such as Rikstelefon to provide cheaper service than the Bell Group. Ericsson had no patent or royalty problems because Bell had not patented their inventions in Scandinavia, his training as an instrument maker was reflected in the standard of finish and the ornate design of Ericsson telephones of this period. At the end of the year he started to manufacture telephones much like those of Siemens.
Ericsson became a major supplier of telephone equipment to Scandinavia. Its factory could not keep up with demand. Much of its raw materials were imported. Much of the walnut wood used for cabinets was imported from the United States. Stockholm's telephone network expanded that year and the company reformed into a telephone manufacturer; when Bell bought the biggest telephone network in Stockholm, it only allowed its own telephones to be used with it. Ericsson's equipment was sold to free telephone associations in the Swedish countryside and in other Nordic countries; the prices of Bell equipment and services led Henrik Tore Cedergren to form an independent telephone company called Stockholms Allmänna Telefonaktiebolag in 1883. As Bell would not deliver equipment to competitors, he formed a pact with Ericsson to supply the equipment for his new telephone network. In 1918 the companies were merged into Allmänna Telefonaktiebolaget LM Ericsson. In 1884, a multiple-switchboard manual telephone exchange was copied from a design by C. E. Scribner at Western Electric.
This was legal because the device was not patented in Sweden, although in the United States it had held patent 529421 since 1879. A single switchboard could handle up to 10,000 lines; the following year, LM Ericsson and Cedergren toured the United States, visiting several telephone exchange stations to gather "inspiration". They found U. S. switchboard designs were more advanced but Ericsson telephones were equal to others. In 1884, a technician named Anton Avén at Stockholms Allmänna Telefonaktiebolag combined the earpiece and the mouthpiece of a standard telephone into a handset, it was used by operators in the exchanges where operators needed to have one hand free when talking to customers. Ericsson picked up this invention and incorporated it into Ericsson products, beginning with a telephone named The Dachshund; as production grew in the late 1890s, the Swedish market seemed to be reaching saturation, Ericsson expanded into foreign markets through a number of agents. The UK and Russia were early markets, where factories were established improve the chances of gaining local contracts and to augment the output of the Swedish factory.
In the UK, the National Telephone Company was a major customer. The Nordic countries were Ericsson customers. Other countries and colonies were exposed to Ericsson products through the influence of their parent countries; these included Australia and New Zealand, which by the late 1890s were Ericsson's largest non-European markets. Mass production techniques now established. Despite their successes elsewhere, Ericsson did not make significant sales into the United States; the Bell Group and Automatic Electric dominated the market. Ericsson sold its U. S. assets. Sales in Mexico led to inroads into South American countries. South Africa and China were generating significant sales. With his company now multinational, Lars Ericsson stepped down from the company in 1901. Ericsson ignored the growth of automatic telephony in the United States and concentrated
A router is a networking device that forwards data packets between computer networks. Routers perform the traffic directing functions on the Internet. Data sent through the internet, such as a web page or email, is in the form of data packets. A packet is forwarded from one router to another router through the networks that constitute an internetwork until it reaches its destination node. A router is connected to two or more data lines from different networks; when a data packet comes in on one of the lines, the router reads the network address information in the packet to determine the ultimate destination. Using information in its routing table or routing policy, it directs the packet to the next network on its journey; the most familiar type of routers are home and small office routers that forward IP packets between the home computers and the Internet. An example of a router would be the owner's cable or DSL router, which connects to the Internet through an Internet service provider. More sophisticated routers, such as enterprise routers, connect large business or ISP networks up to the powerful core routers that forward data at high speed along the optical fiber lines of the Internet backbone.
Though routers are dedicated hardware devices, software-based routers exist. When multiple routers are used in interconnected networks, the routers can exchange information about destination addresses using a routing protocol; each router builds up a routing table listing the preferred routes between any two systems on the interconnected networks. A router has two types of network element components organized onto separate planes: Control plane: A router maintains a routing table that lists which route should be used to forward a data packet, through which physical interface connection, it does this using internal preconfigured directives, called static routes, or by learning routes dynamically using a routing protocol. Static and dynamic routes are stored in the routing table; the control-plane logic strips non-essential directives from the table and builds a forwarding information base to be used by the forwarding plane. Forwarding plane: The router forwards data packets between incoming and outgoing interface connections.
It forwards them to the correct network type using information that the packet header contains matched to entries in the FIB supplied by the control plane. A router may have interfaces for different types of physical layer connections, such as copper cables, fiber optic, or wireless transmission, it can support different network layer transmission standards. Each network interface is used to enable data packets to be forwarded from one transmission system to another. Routers may be used to connect two or more logical groups of computer devices known as subnets, each with a different network prefix. Routers may provide connectivity within enterprises, between enterprises and the Internet, or between internet service providers' networks; the largest routers may be used in large enterprise networks. Smaller routers provide connectivity for typical home and office networks. All sizes of routers may be found inside enterprises; the most powerful routers are found in ISPs, academic and research facilities.
Large businesses may need more powerful routers to cope with ever-increasing demands of intranet data traffic. A hierarchical internetworking model for interconnecting routers in large networks is in common use. Access routers, including small office/home office models, are located at home and customer sites such as branch offices that do not need hierarchical routing of their own, they are optimized for low cost. Some SOHO routers are capable of running alternative free Linux-based firmware like Tomato, OpenWrt or DD-WRT. Distribution routers aggregate traffic from multiple access routers. Distribution routers are responsible for enforcing quality of service across a wide area network, so they may have considerable memory installed, multiple WAN interface connections, substantial onboard data processing routines, they may provide connectivity to groups of file servers or other external networks. In enterprises, a core router may provide a collapsed backbone interconnecting the distribution tier routers from multiple buildings of a campus, or large enterprise locations.
They lack some of the features of edge routers. External networks must be considered as part of the overall security strategy of the local network. A router may include a firewall, VPN handling, other security functions, or these may be handled by separate devices. Routers commonly perform network address translation which restricts connections initiated from external connections but is not recognised as a security feature by all experts.. Some experts argue that open source routers are more secure and reliable than closed source routers because open source routers allow mistakes to be found and corrected. Routers are often distinguished on the basis of the network in which they operate. A router in a local area network of a single organisation is called an interior router. A router, operated in the Internet backbone is described as exterior router. While a router that connects a LAN with the Internet or a wide area network is called a border router, or gateway router. Routers intended for ISP and major enterprise connectivity exchange routing information using the Border Gateway Protocol.
RFC 4098 standard defines the types of BGP routers according to their functions: Edge router: Also called a provider edge router, is placed at the edge of an ISP network. The router uses External BGP to EBGP
Internet protocol suite
The Internet protocol suite is the conceptual model and set of communications protocols used in the Internet and similar computer networks. It is known as TCP/IP because the foundational protocols in the suite are the Transmission Control Protocol and the Internet Protocol, it is known as the Department of Defense model because the development of the networking method was funded by the United States Department of Defense through DARPA. The Internet protocol suite provides end-to-end data communication specifying how data should be packetized, transmitted and received; this functionality is organized into four abstraction layers, which classify all related protocols according to the scope of networking involved. From lowest to highest, the layers are the link layer, containing communication methods for data that remains within a single network segment; the technical standards underlying the Internet protocol suite and its constituent protocols are maintained by the Internet Engineering Task Force.
The Internet protocol suite predates the OSI model, a more comprehensive reference framework for general networking systems. The Internet protocol suite resulted from research and development conducted by the Defense Advanced Research Projects Agency in the late 1960s. After initiating the pioneering ARPANET in 1969, DARPA started work on a number of other data transmission technologies. In 1972, Robert E. Kahn joined the DARPA Information Processing Technology Office, where he worked on both satellite packet networks and ground-based radio packet networks, recognized the value of being able to communicate across both. In the spring of 1973, Vinton Cerf, who helped develop the existing ARPANET Network Control Program protocol, joined Kahn to work on open-architecture interconnection models with the goal of designing the next protocol generation for the ARPANET. By the summer of 1973, Kahn and Cerf had worked out a fundamental reformulation, in which the differences between local network protocols were hidden by using a common internetwork protocol, instead of the network being responsible for reliability, as in the ARPANET, this function was delegated to the hosts.
Cerf credits Hubert Zimmermann and Louis Pouzin, designer of the CYCLADES network, with important influences on this design. The protocol was implemented as the Transmission Control Program, first published in 1974; the TCP managed both datagram transmissions and routing, but as the protocol grew, other researchers recommended a division of functionality into protocol layers. Advocates included Jonathan Postel of the University of Southern California's Information Sciences Institute, who edited the Request for Comments, the technical and strategic document series that has both documented and catalyzed Internet development. Postel stated, "We are screwing up in our design of Internet protocols by violating the principle of layering." Encapsulation of different mechanisms was intended to create an environment where the upper layers could access only what was needed from the lower layers. A monolithic design would lead to scalability issues; the Transmission Control Program was split into two distinct protocols, the Transmission Control Protocol and the Internet Protocol.
The design of the network included the recognition that it should provide only the functions of efficiently transmitting and routing traffic between end nodes and that all other intelligence should be located at the edge of the network, in the end nodes. This design is known as the end-to-end principle. Using this design, it became possible to connect any network to the ARPANET, irrespective of the local characteristics, thereby solving Kahn's initial internetworking problem. One popular expression is that TCP/IP, the eventual product of Cerf and Kahn's work, can run over "two tin cans and a string." Years as a joke, the IP over Avian Carriers formal protocol specification was created and tested. A computer called, it forwards network packets forth between them. A router was called gateway, but the term was changed to avoid confusion with other types of gateways. From 1973 to 1974, Cerf's networking research group at Stanford worked out details of the idea, resulting in the first TCP specification.
A significant technical influence was the early networking work at Xerox PARC, which produced the PARC Universal Packet protocol suite, much of which existed around that time. DARPA contracted with BBN Technologies, Stanford University, the University College London to develop operational versions of the protocol on different hardware platforms. Four versions were developed: TCP v1, TCP v2, TCP v3 and IP v3, TCP/IP v4; the last protocol is still in use today. In 1975, a two-network TCP/IP communications test was performed between Stanford and University College London. In November 1977, a three-network TCP/IP test was conducted between sites in the US, the UK, Norway. Several other TCP/IP prototypes were developed at multiple research centers between 1978 and 1983. In March 1982, the US Department of Defense declared TCP/IP as the standard for all military computer networking. In the same year, Peter T. Kirstein's research group at University College London adopted the protocol; the migration of the ARPANET to TCP/IP was completed on flag day January 1, 1983, when the new protocols were permanently activated.
In 1985, the Internet Advisory Board held a three-day TCP/
Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops and sells networking hardware, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, WebEx, Jabber and Jasper, Cisco specializes into specific tech markets, such as Internet of Things, domain security and energy management. Cisco stock was added to the Dow Jones Industrial Average on June 8, 2009, is included in the S&P 500 Index, the Russell 1000 Index, NASDAQ-100 Index and the Russell 1000 Growth Stock Index. Cisco Systems was founded in December 1984 by Leonard Bosack and Sandy Lerner, two Stanford University computer scientists, they pioneered the concept of a local area network being used to connect geographically disparate computers over a multiprotocol router system. By the time the company went public in 1990, Cisco had a market capitalization of $224 million.
By the end of the dot-com bubble in the year 2000, Cisco had a more than $500 billion market capitalization. Cisco Systems was founded in December 1984 by Sandy Lerner, a director of computer facilities for the Stanford University Graduate School of Business. Lerner partnered with her husband, Leonard Bosack, in charge of the Stanford University computer science department's computers. Cisco's initial product has roots in Stanford University's campus technology. In the early 1980's students and staff at Stanford; the Blue Box used software, written at Stanford by research engineer William Yeager. In 1985, Bosack and Stanford employee Kirk Lougheed began a project to formally network Stanford's campus, they adapted Yeager's software into what became the foundation for Cisco IOS, despite Yeager's claims that he had been denied permission to sell the Blue Box commercially. On July 11, 1986, Bosack and Lougheed were forced to resign from Stanford and the university contemplated filing criminal complaints against Cisco and its founders for the theft of its software, hardware designs, other intellectual properties.
In 1987, Stanford licensed two computer boards to Cisco. In addition to Bosack, Lougheed, Greg Satz, Richard Troiano, completed the early Cisco team; the company's first CEO was Bill Graves, who held the position from 1987 to 1988. In 1988, John Morgridge was appointed CEO; the name "Cisco" was derived from the city name San Francisco, why the company's engineers insisted on using the lower case "cisco" in its early years. The logo is intended to depict the two towers of the Golden Gate Bridge. On February 16, 1990, Cisco Systems went public with a market capitalization of $224 million, was listed on the NASDAQ stock exchange. On August 28, 1990, Lerner was fired. Upon hearing the news, her husband Bosack resigned in protest; the couple walked away from Cisco with $170 million, 70% of, committed to their own charity. Although Cisco was not the first company to develop and sell dedicated network nodes, it was one of the first to sell commercially successful routers supporting multiple network protocols.
Classical, CPU-based architecture of early Cisco devices coupled with flexibility of operating system IOS allowed for keeping up with evolving technology needs by means of frequent software upgrades. Some popular models of that time managed to stay in production for a decade unchanged; the company was quick to capture the emerging service provider environment, entering the SP market with product lines such as Cisco 7000 and Cisco 8500. Between 1992 and 1994, Cisco acquired several companies in Ethernet switching, such as Kalpana, Grand Junction and most notably, Mario Mazzola's Crescendo Communications, which together formed the Catalyst business unit. At the time, the company envisioned layer 3 routing and layer 2 switching as complementary functions of different intelligence and architecture—the former was slow and complex, the latter was fast but simple; this philosophy dominated the company's product lines throughout the 1990s. In 1995, John Morgridge was succeeded by John Chambers; the Internet Protocol became adopted in the mid-to-late 1990s.
Cisco introduced products ranging from modem access shelves to core GSR routers, making them a major player in the market. In late March 2000, at the height of the dot-com bubble, Cisco became the most valuable company in the world, with a market capitalization of more than $500 billion; as of July 2014, with a market cap of about US$129 billion, it was still one of the most valuable companies. The perceived complexity of programming routing functions in silicon led to the formation of several startups determined to find new ways to process IP and MPLS packets in hardware and blur boundaries between routing and switching. One of them, Juniper Networks, shipped their first product in 1999 and by 2000 chipped away about 30% from Cisco SP Market share. In response, Cisco developed homegrown ASICs and fast processing cards for GSR routers and Catalyst 6500 switches. In 2004, Cisco started migration to new high-end hardware CRS-1 and software architecture IOS-XR; as part of a rebranding campaign in 2006, Cisco Systems adopted the shortened name "Cisco" and created "The Human Network" advertising campaign.
These efforts were meant to make Cisco a "household" brand—a strategy designed to support the low-end Linksys products and future consumer products. On the more traditional business side, Cisco cont
Juniper Networks, Inc. is an American multinational corporation headquartered in Sunnyvale, that develops and markets networking products. Its products include routers, network management software, network security products and software-defined networking technology; the company was founded in 1996 by Pradeep Sindhu, with Scott Kriens as the first CEO, where he remained until September 2008 and was has been credited with much of Juniper's early market success. It received several rounds of funding from venture capitalists and telecommunications companies before going public in 1999. Juniper grew to $673 million in annual revenues by 2000. By 2001 it had a 37% share of the core routers market, challenging Cisco's once-dominant market-share, it grew to $4 billion in revenues by 2004 and $4.63 billion in 2014. Juniper appointed Kevin Johnson as CEO in 2008, Shaygan Kheradpir in 2013 and Rami Rahim in 2014. Juniper Networks focused on core routers, which are used by internet service providers to perform IP address lookups and direct internet traffic.
Through the acquisition of Unisphere in 2002, the company entered the market for edge routers, which are used by ISPs to route internet traffic to individual consumers. Juniper Networks entered the IT security market with its own JProtect security toolkit in 2003 before acquiring security company NetScreen Technologies the following year, it entered the enterprise segment in the early 2000s, which accounted for one-third of revenues by 2005. As of 2014, Juniper has been focused on developing new software-defined networking products. Pradeep Sindhu, a scientist with Xerox’s Palo Alto Research Center, conceived the idea for Juniper Networks while on vacation in 1995 and founded the company in February 1996. At the time, most routers used for Internet traffic were intended for phone calls and had dedicated circuits for each caller. Sindhu wanted to create data packet-based routers that were optimized for Internet traffic, whereby the routing and transferring of data occurs "by means of addressed packets so that a channel is occupied during the transmission of the packet only, upon completion of the transmission the channel is made available for the transfer of other traffic."
He was joined by engineers Bjorn Liencres from Sun Microsystems and Dennis Ferguson from MCI Communications. Sindhu started Juniper Networks with $2 million in seed funding, followed by $12 million in funding in the company's first year of operations. About seven months after the company's founding, Scott Kriens was appointed CEO to manage the business, while founder Sindhu became the Chief Technology Officer. By February 1997, Juniper had raised $8 million in venture funding; that year, Juniper Networks raised an additional $40 million in investments from a round that included four out of five of the largest telecommunications equipment manufacturers: Siemens, Nortel and 3Com. Juniper received $2.5 million from Qwest and other investments from AT&T. Juniper Networks had $3.8 million in annual revenue in 1998. By the following year, its only product, the M40 router, was being used by 50 telecommunications companies. Juniper Networks signed agreements with Ericsson to distribute the M40 internationally.
A European headquarters was established in the United Kingdom and an Asia-Pacific headquarters in Hong Kong. A subsidiary was created in Japan and offices were established in Korea in 1999. Juniper Networks's market share for core routers grew from 6% in 1998 to 17.5% one year and 20% by April 2000. Juniper Networks filed for an initial public offering in April 1999 and its first day on the NASDAQ was that June; the stock set a record in first-day trading in the technology sector by increasing 191% to a market capitalization of $4.9 billion. According to Telephony, Juniper Networks became the "latest darling of Wall Street", reaching a $7 billion valuation by late July. Within a year, the company's stock grew five-fold. Juniper Networks's revenues grew 600% in 2000 to $673 million; that same year, Juniper Networks moved its headquarters from Mountain View to California. By 2001, Juniper controlled one-third of the market for high-end core routers at the expense of Cisco Systems sales. According to BusinessWeek, "analysts unanimously agree that Juniper's boxes technically superior to Cisco's because the hardware does most of the data processing.
Cisco routers still relied on software, which results in slower speeds." However, Cisco provided a broader range of services and support and had an entrenched market position. The press depicted Juniper and Cisco as a "David versus Goliath" story. Cisco had grown through acquisitions to be a large generalist vendor for routing equipment in homes and for ISPs, whereas Juniper was thought of as the "anti-Cisco" for being a small company with a narrow focus. In January 2001, Cisco introduced a suite of router products that BusinessWeek said was intended to challenge Juniper's increasing market-share. According to BusinessWeek, Juniper's top-end router was four times as fast at only twice the cost of comparable Cisco products. Cisco's routers were not expected to erode Juniper's growing share of the market, but other companies such as Lucent and startups Avici Systems and Pluris had announced plans to release products that would out-pace Juniper's routers. Juniper introduced a suite of routers for the network edge.
Juniper's edge routers had a 9% market share two months after release. Both companies made exaggerated marketing claims.
Label Distribution Protocol
Label Distribution Protocol is a protocol in which routers capable of Multiprotocol Label Switching exchange label mapping information. Two routers with an established session are called LDP peers and the exchange of information is bi-directional. LDP is used to build and maintain LSP databases that are used to forward traffic through MPLS networks. LDP can be used to distribute the inner label and outer label in MPLS. For inner label distribution, targeted LDP is used. LDP and tLDP discovery runs on UDP port 646 and the session is built on TCP port 646. During the discovery phase hello packets are sent on UDP port 646 to the'all routers on this subnet' group multicast address. However, tLDP unicasts the hello packets to the targeted neighbor's address; the Label Distribution Protocol is a protocol defined by the IETF for the purpose of distributing labels in an MPLS environment. LDP relies on the underlying routing information provided by an IGP in order to forward label packets; the router forwarding information base, or FIB, is responsible for determining the hop-by-hop path through the network.
Unlike traffic engineered paths, which use constraints and explicit routes to establish end-to-end Label Switched Paths, LDP is used only for signaling best-effort LSPs. Targeted LDP sessions are different because during the discovery phase hellos are unicast to the LDP peer rather than using multicast. A consequence of this is that tLDP can be set up between non-directly connected peers whereas non-targeted LDP peers must be on the same subnet. TLDP may still be used between connected peers. On a router running TiMOS when an SDP is configured, automatic ingress and egress labeling is enabled by default and ingress and egress "service" labels are signaled over a TLDP connection. If signaling is turned off on an SDP, ingress and egress “service” labels must be manually configured when the SDP is bound to a service; this method determines a path through the network based on the interior gateway protocol's view of the network. If no constraints are applied to the LSP the routers send the request for a path to the active next hop for that destination, without explicit routing.
The IGP at each router is free to select active next hops based on the link state database. Resource Reservation Protocol Constraint-based Routing Label Distribution Protocol - CR-LDP RFC 5036
Lucent Technologies, Inc. was an American multinational telecommunications equipment company headquartered in Murray Hill, New Jersey, in the United States. It was established on September 30, 1996, through the divestiture of the former AT&T Technologies business unit of AT&T Corporation, which included Western Electric and Bell Labs. Lucent was merged with Alcatel SA of France in a merger of equals on December 1, 2006, forming Alcatel-Lucent. Alcatel-Lucent was absorbed by Nokia in January 2016. Lucent means "they shine" in Latin; the name was applied in 1996 at the time of the split from AT&T. The name was criticised, as the logo was to be, both internally and externally. Corporate communications and business cards included the strapline'Bell Labs Innovations' in a bid to retain the prestige of the internationally famous research lab, within a new business under an as-yet unknown name; this same linguistic root gives Lucifer, "the light bearer", a character in Dante's epic poem Inferno. Shortly after the Lucent renaming in 1996, Lucent's Plan 9 project released a development of their work as the Inferno OS in 1997.
This extended the'Lucifer' and Dante references as a series of punning names for the components of Inferno - Dis, Limbo and Styx. When the rights to Inferno were sold in 2000, the company Vita Nuova Holdings was formed to represent them; this continues the Dante theme, although moving away from his Divine Comedy to the poem La Vita Nuova. The Lucent logo, the Innovation Ring, was designed by Landor Associates, a prominent San Francisco-based branding consultancy. One source inside Lucent says that the logo is a Zen Buddhist symbol for "eternal truth", the Enso, turned 90 degrees and modified. Another source says it represents a snake holding its tail in its mouth. Lucent's logo has been said to represent constant re-creating and re-thinking. Carly Fiorina picked the logo because her mother was a painter and she rejected the sterile geometric logos of most high tech companies. After the logo was compared in the media to the ring a coffee mug leaves on paper, a Dilbert comic strip showed Dogbert as an overpaid consultant designing a new company logo.
A telecommunication commentator referred to the logo as "a big red zero" and predicted financial losses. One of the primary reasons AT&T Corporation chose to spin off its equipment manufacturing business was to permit it to profit from sales to competing telecommunications providers. Bell Labs brought prestige to the new company, as well as the revenue from thousands of patents. At the time of its spinoff, Lucent was placed under the leadership of Henry Schacht, brought in to oversee its transition from an arm of AT&T into an independent corporation. Richard McGinn, serving as President and COO, succeeded Schacht as CEO in 1997 while Schacht remained chairman of the board. Lucent became a "darling" stock of the investment community in the late 1990s, its split-adjusted spinoff price of $7.56/share rose to a high of $84. Its market capitalization reached a high of $258 billion, it was at the time the most held company with 5.3 million shareholders. In 1997, Lucent acquired Milpitas-based voicemail market leader Octel Communications Corporation for $2.1 billion, a move which rendered the Business Systems Group profitable.
By 1999 Lucent stock continued to soar and in that year Lucent acquired Ascend Communications, an Alameda, California–based manufacturer of communications equipment for US$24 billion. Lucent decided instead to build its own routers. In 1997, Lucent acquired Livingston Enterprises Inc. for $650 million in stock. Livingston was known most for the creation of the RADIUS protocol and their PortMaster product, used by dial-up internet service providers. In 1995, Carly Fiorina led corporate operations. In that capacity, she reported to Lucent chief executive Henry B. Schacht, she played a key role in planning and implementing the 1996 initial public offering of a successful stock and company launch strategy. Under her guidance, the spin-off raised US$3 billion. In 1996, Fiorina was appointed president of Lucent's consumer products sector, reporting to president and chief operating officer Rich McGinn. In 1997, she was named group president for Lucent's US$19 billion global service-provider business, overseeing marketing and sales for the company's largest customer segment.
That year, Fiorina chaired a US$2.5 billion joint venture between Lucent's consumer communications and Royal Philips Electronics, under the name Philips Consumer Communications. The focus of the venture was to bring both companies to the top three in technology and brand recognition; the project struggled and dissolved a year after it garnered only 2% market share in mobile phones. Losses were at $500 million on sales of $2.5 billion. As a result of the failed joint venture, Philips announced the closure of one-quarter of the company's 230 factories worldwide, Lucent closed down its wireless handset portion of the venture. Analysts suggested that the joint venture's failure was due to a combination of technology and management problems. Upon the end of the joint venture, PCC sent 5,000 employees back to Philips, many of which were laid off, 8,400 employees back to Lucent. Under Fiorina, the company added 22,000 jobs and revenues seemed to grow from US$19 billion to US$38 billion. However, the real cause of Lucent spurring sales under Fiorina was by lending money to their own customers.