Cisco Systems Inc, the world's top maker of network equipment, introduced a router that it says can handle 12 times the Internet traffic of the nearest competing product.

Cisco shares fell 0.5 percent after the news. The stock climbed 4 percent on Monday partly in anticipation of the announcement, which Cisco had flagged as technology that would forever change the Internet and show what's possible when networking gets an adrenaline boost.

The company said AT&T Inc, the biggest U.S. telecommunications company, is testing the new router.

Chief Executive John Chambers said that the new router, the CRS-3, would help power services such as Internet video.

For example, Cisco said the product could deliver every movie ever made in just four minutes.

(Reporting by Sinead Carew and Franklin Paul; Editing by Derek Caney)