News Release

Cisco Systems and General Instrument to work with AT&T on High Speed Internet Access Network

Cisco and GI to develop and trial Integrated IP Broadband
Jan 07, 1999

Cisco and GI to develop and trial Integrated IP Broadband Networking Solutions

HORSHAM, Penn. and SAN JOSE, Calif. -- January 7, 1999 -- Cisco Systems, Inc. (NASDAQ: CSCO) and General Instrument Corporation (NYSE: GIC) announced today that they intend to work with AT&T on a non-exclusive basis to develop and trial a seamless, end-to-end Internet Protocol (IP) solution that would allow AT&T to offer data, voice and video services over the hybrid fiber-coax network now being deployed by AT&T and TCI.

Although specific agreements have not been reached, the Cisco/GI IP telephony solution under development would allow AT&T to offer its customers the ability to simultaneously watch television, send and receive faxes, surf the World Wide Web and talk on the telephone.

"Cisco's collaboration with AT&T and GI will result in a New World network that will fundamentally change the way communications services are delivered to the consumer market," said John Chambers, president and CEO of Cisco Systems, Inc. "By combining broadband Internet, phone and video services over a single cable line, we are taking a major step towards implementing future integrated data, voice and video telecommunications on a mass market scale."

"The HFC IP telephony system being developed by Cisco and GI will establish the benchmark for integrated broadband service platforms, leading the way for the industry. We are extremely pleased to have the opportunity to partner with Cisco and AT&T on this groundbreaking project," said Edward Breen, chairman and chief executive officer of General Instrument.

The proposed AT&T broadband network would combine advanced networking and Voice-over-IP (VoIP) technologies to enable cost-effective delivery of consumer services while streamlining operational demands. Using broadband packet technologies, data, voice and video services that traditionally required construction of multiple parallel legacy networks would be delivered using one integrated high-speed infrastructure.

The IP backbone, as proposed by Cisco and GI, would contain the Cisco 12000 Gigabit Switch Router (GSR), a multi-gigabit, carrier-class, IP backbone router, and the Universal Broadband Router (uBR), a cost-effective, scalable interface between subscriber cable modems and the backbone data network. The packet telephony gateways would be based on the Cisco AS5X00, voice-over-IP gateway servers.

Cisco, with cooperation from Cisco partners, proposes to deliver management, call processing and provisioning/activation solutions used in the AT&T deployment. This combination of leading Internet technologies from Cisco and best-of-breed partners would enable a suite of advanced services that will be more efficient to manage, have greater application flexibility, and lower costs for the end user.

The primary gateway to the next-generation network would be GI's DCT-5000+ advanced consumer digital in-home terminal. The DCT-5000+ capability to serve as an interactive gateway to this advanced consumer network allows video entertainment, IP-based telephone and high-speed data services to be delivered simultaneously to the home with superior all-digital quality.

In the proposed architecture, GI's suite of industry-standard Customer Premise Equipment (CPE) solutions would also be integrated into AT&T's network. GI's CPE solutions include stand-alone Broadband Telephony Interface (BTI) terminals and integrated BTI solutions for the SURFboard. high-speed cable modem and the DCT-5000+ advanced set-top terminal. By integrating the set-top terminal, cable modem and BTI into one system, this platform offers a more cost-effective alternative to traditional circuit-switched telephony systems.

As development efforts move forward, the three companies currently plan to conduct a market trial expected to begin in late 1999, with an objective of moving toward commercial availability next year.

About General Instrument

General Instrument is a leading worldwide provider of integrated and interactive broadband access solutions, teaming with its business partners to lead the convergence of the Internet, telecommunications, and video entertainment industries.

Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is theworldwide leader in networking for the Internet.

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