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Sycamore, Enron ink data delivery deal

The networking equipment upstart announces a three-year technology deal with Enron Broadband Services that could bring Sycamore Networks as much as $200 million.

Sycamore Networks announced a three-year technology deal with network operator Enron Broadband Services that could be worth as much as $200 million to the networking equipment upstart.

Under terms of the deal, Sycamore's fiber-optic based switching devices will be used in the construction of Enron's long-haul and metropolitan network routes.

Adding Enron as a potential customer is Sycamore's latest gambit in a high-stakes race among entrenched equipment providers and upstart firms to supply communications companies with cutting-edge networking technology. The deal is particularly important for Sycamore, because the firm listed only one customer--Williams Communications--when it went public last fall.

Enron has been active in developing relationships with technology specialists recently, purchasing $350 million worth of systems equipment from Sun Microsystems and continuing tests with routing technology start-up Avici Systems.

Enron is one of several new entrants into the communications industry building new high-speed networks based on fiber-optic technology. Others include Williams Communications, Level 3 Communications and NextLink Communications, among others.