Agreement Represents First Broadband Access Development Deal in China
DALIAN, China, -- January 22, 1999 -- Daxian Group, a leading manufacturer of electronic consumer products, Dalian CATV, Dalian's sole cable operator, and Cisco Systems today signed a technology transfer agreement to allow the Daxian Group to develop, manufacture and distribute cable modems based on Cisco NetWorks IP technology. The agreement is strongly supported by the Dalian municipal government and represents the first co-development agreement of its kind for broadband access products in China, a market with huge business potential for data and voice over cable. Dalian is a coastal city of 1.5 million inhabitants located in northeast China.
Under the agreement, Daxian Group will build DOCSIS-compliant cable modems bearing the Cisco NetWorks logo. DOCSIS (Data Over Cable Service Interface Specification) is an industry standard that defines technical specifications for equipment at both subscriber locations and cable operator head-end locations. Cisco will license to Daxian the initial reference design for the modem and the Cisco NetWorks software to connect to Cisco head-end equipment. Cisco already has similar agreements in place with global consumer giants Sony Corporation and Samsung Corporation. Daxian Group is Cisco's first such technology transfer partner in China.
Qin Hongwei, vice secretary of Dalian Municipal Government said, "The Mayor of Dalian personally is a strong advocate for this project, and the Dalian Municipal government has pledged to provide our support for the long-term partnership between Cisco and Daxian."
According to Liu Binqiang, chairman and president of Daxian Group, the key reason for the cooperation between Daxian and Cisco is their confidence in Cisco's products, technologies, and most important of all, Cisco's long-term prospects in China's internetworking industry.
"Following the September visit to Dalian of Charles Giancarlo, our senior vice president for Global Alliances, Cisco Systems is pleased to be working with Daxian Group and Dalian CATV. They are a very important partners of ours in China, and we will strive to make this project a success, and further strengthen our long-term relationship with the Dalian municipal government," said Cliff Meltzer, senior vice president of IOS Technology and Engineering Operations for Cisco Systems.
Duh Jiabin, president of Cisco Systems China, said, "The cable modem market in China is huge today, and there are already over 100 million subscribers in the country. As this number grows over the next few years with the support of the municipal government, Dalian will become one of the most wired cities in China."
William Nuti, Cisco's vice president of operations for Greater Asia, said, "Cisco is firmly committed to the facilitation of technology growth in China via technology transfer, and has collaborated extensively with local organizations in the past to develop products geared for the China market. This agreement is the first in an ongoing plan to bring to market high-speed networking products with local organizations in China. We expect the wide deployment of high-speed residential cable modems to substantially drive the internetworking industry in China."
The DOCSIS standard is managed by Multimedia Cable Network System (MCNS) Partners Ltd., an organization formed by four major cable television system operators - Comcast Cable Communications Inc., Cox Communications, Tele-Communications Inc., and Time Warner Cable. The effort is also supported by Rogers Cablesystems Ltd., MediaOne and Cable Television Laboratories Inc. (CableLabs).
About Daxian Group
Daxian Group is one of China's top 500 enterprises with businesses covering big screen TVs, VCRs, multi-layer printed circuit boards and high fidelity audio equipment.About Dalian CATV
Dalian CATV is Dalian's sole cable TV operator providing service to approximately 350,000 subscribers, a number that is increasing by 50,000 annually.Cisco Systems
Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet.Cisco, Cisco IOS, Cisco Systems and the Cisco Systems logo are registered trademarks of Cisco Systems, Inc. in the U.S. and other countries. All other trademarks mentioned in this document are the property of their respective owners.
