Despite sluggish demand in the telecom sector as most carriers cut back spending from last year, Qwest decided to upgrade its technology to respond to the growing demand for data services within certain U.S. cities.
Qwest said second-quarter demand for Internet, data and IP (Internet protocol) services grew 41 percent from the same quarter a year ago. Internet and data revenue comprised 27 percent of the company's $5.2 billion in revenue for the most recent quarter.
The Denver-based carrier will use Cisco's 12416 and 10008 Internet routers for its long-haul networks, which transmit data across the country between cities. Qwest will install Cisco's ONS 15454 Metro Optical Transport Platform for use in metropolitan networks, which handle data within cities.
The gear can send data using IP technology, which is a standard that chops up a chunk of data and sends it in smaller clumps of information packets through a network then reassembles them at their destination.
Qwest spokeswoman Claire Maledon said the company has mainly used IP technology in its long-haul networks, and the technology is particularly useful in providing video and voice-over IP services to customers, which is another way of connecting voice calls.
The company declined to disclose financial terms of the deal.
This is not the first deal between the two companies. Qwest started purchasing IP gear from Cisco in 1998 for its long-haul networks.
Cisco announces earnings Tuesday after the markets close.