Alcatel-Lucent (ALU +0.7%) has released its 7950 XRS line, its first products for a lucrative core router market currently dominated by Cisco (NASDAQ:CSCO) and Juniper (NYSE:JNPR). The 7950 line offers very high densities and runs on Alcatel's hyped FP3 network processor, which can handle 400 Gbps transmission speeds. Carrier inertia and comfort with Cisco and Juniper's software will be major challenges for Alcatel, but Nomura is optimistic the company can carve a niche.