News Release

Japan Telecom to Collaborate with Cisco Systems for its Next-Generation Network Infrastructure

Trial New-World Network Would Revolutionize Service Delivery
Dec 16, 1998

SAN JOSE, Calif. -- December 16, 1998 -- Japan Telecom Co., Ltd. will evaluate IP-based networking solutions from Cisco Systems in the development and trial of its Progressive and Revolutionary Integration on Service Media (PRISM) next-generation network infrastructure. This would be the first new-world network in Japan and among the first in Asia, and it would allow Japan Telecom to significantly reduce the cost of existing services while enabling next-generation data, voice and video services. Eventually, PRISM would also replace Japan Telecom's existing core network of voice switches to provide a single, integrated multimedia network.

Aggressively Investing in the New World

Japan Telecom is a leading provider of comprehensive and global, seamless telecommunication services for domestic and international customers and the nation's leading Frame Relay service provider. Japan Telecom became the first Cisco Powered Network Program member in Japan. Cisco networking equipment runs the firm's Frame Relay and ATM services, as well as its IP/Internet Open Data Network (ODN) offering. PRISM would be developed as an IP+ATM new-world network infrastructure for delivery of existing services and next-generation IP services from a single platform.

"Cisco shares a common understanding and vision with Japan Telecom," says Mr. Murakami, president of Japan Telecom. "We chose to collaborate with Cisco because of its 'let's work together' attitude, as well as for its technology leadership. With this collaboration, Japan Telecom can make PRISM the number-one network in Japan and a first-class global network."

"Cisco is delighted to be selected as Japan Telecom's collaboration partner for realizing the PRISM network," says Andy Lockhart, vice president, Japan Field Operations, Cisco Japan. "We believe our new-world technologies, including IP+ATM, optical IP, carrier-class IP telephony and a complete set of emerging local access solutions, as well as our commitment to a total support and integration solution will be a significant contribution to their success."

Japan Telecom will invest in the PRISM initial trial installation and final network deployment. The network would enable new services and provide access to new market constituencies via access interfaces to wireless local loop (WLL), cable television (CATV), and a next-generation mobile communication network (IMT-2000) based on code division multiple access (CDMA) technology. Low costs and a variety of access options would allow the firm to quickly deliver new services that meet customer needs and facilitate rapid customer adoption, giving Japan Telecom a decisive competitive advantage.

Migrating Smoothly to the Future

Initially PRISM would integrate with Japan Telecom's data networks, beginning with ODN, Frame Relay and ATM services. A successful trial integrating the IP core and connecting to the existing telephone network will be key to the commercial launch of voice-over-IP (VoIP) services.

"The field trial will begin in April 1999 and will target specific enterprise customers," says Mr. Osada, managing director and general manager, Technology and Engineering Headquarters for Japan Telecom. "We plan to expand the trial in July next year with commercial launch targeted for April 2000. In four to five years we anticipate SONET-to-wave division multiplexing (WDM) migration, and within 10 to 15 years, we will eliminate our existing voice switches completely."

"PRISM is clearly a leading example in Japan of a new-world network implementation," says Larry Lang, Cisco's vice president of service provider marketing. "We expect this will be a business model followed by service providers in Japan and around the world for delivering profitable integrated communications services using broadband packet technology."

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