Amid growing demand for video and mobile applications for the largest network carriers, hardware maker Cisco on Tuesday unveiled its latest router, which the company says will give carriers 12 times the traffic capacity of currently available devices.

 This is about video over the internet, said Cisco CEO John Chambers. He foresees the product enabling a generation of collaboration built through video.

The company says the device can handle the transmission of up to 322 Terabits per second, which would be enough data capacity to allow every man, woman and child in China to make a video call, simultaneously.

AT&T Labs chief Keith Cambron said today AT&T's network handled 40 percent more traffic in 2009 than the previous year and expects the growth to continue this year.

Chambers sees major uses of the technology in the fields of health care and education as well as increased productivity for businesses and government.

According to the press release, the $90,000 CRS-3 will offer up to 60 percent savings on power consumption compared to competitive platforms. Cisco also expects a smooth transition from the CRS-1. There are about 5,000 of the older units installed around the world, the company said.

Cisco and AT&T said today the CRS-3 router was a part of a successful live network environment trial of 100-Gigabit backbone network technology carried out by AT&T recently between New Orleans and Miami.