Avici extends AT&T contract

Avici Systems announced Monday that is has extended its contract with AT&T, which has been using Avici's high-end Internet Protocol routers to build its IP and multiprotocol label switching network since 2000.

Avici, which was founded in 1996 and went public in 2000, has struggled to win new customers over the past couple of years. In January, the company announced a partnership with Nortel Networks. Cisco Systems and Juniper Networks, which together make up more than 90 percent of the core IP router market, are two of Avici's biggest competitors. Earlier this year, Cisco announced its next-generation core router, the CRS-1.