First Phase Rollout to Connect Oslo, Paris, and Vienna
AMSTERDAM, Netherlands -- May 10, 1999 -- Priority Telecom, the competitive local exchange carrier (CLEC) and integrated telephony services division of United Pan-Europe Communications (UPC), today announced the first phase implementation of its international telecommunications strategy. This phase of development will connect Priority Telecom switches located in Oslo, Norway; Paris, France; and Vienna, Austria; utilizing the Cisco family of router and Voice over Internet Protocol (VoIP) products. The interconnection of the switches will allow Priority Telecom to take the full advantages of IP technology in maximizing the utilization of the existing backbone while increasing the least cost routing ability for the company's international traffic.
Jeff Ross, COO of Priority Telecom said: "It is extremely important that we implement solutions that position Priority Telecom along the leading edge of telecom technology. Our ability to more effectively utilize existing bandwidth while maintaining a high quality of service for our customers is extremely important. Cisco was chosen for our first phase implementation because they meet these key requirements and have a track record for delivering quality new generation products."
"Priority Telecom is in the vanguard of 'New World' telecom companies who are building IP-based networks. By making Cisco's IP platform part of their architecture, Priority Telecom will be able to generate new revenues, achieve a stronger competitive position and gain operational cost efficiencies," said Paul Mountford, Cisco's vice president of service provider operations in Europe, Middle East and Africa.
The international backbone being deployed will eventually link all of Priority Telecom's switches and key points-of-presence across Europe and the United States. The locations are linked via UPC's broadband division, chello, using state-of-the-art VoIP technology provided by Cisco. Chello's IP backbone, called Aorta, became operational in November of 1998.
Savings generated through the use of the new technology and greater purchasing power on international traffic will be translated into more cost effective and innovative products for Priority Telecom's residential and business customers. Completion of phase one of the network implementation is expected by the end of June.
About Priority Telecom
Priority Telecom is the Competitive Local Exchange Carrier ("CLEC") division of United Pan-Europe Communications ("UPC"). It offers residential and business customers telephony services in France, Norway, Austria and the Netherlands. Priority Telecom was the first company to offer hybrid fibre coaxial services on a commercial basis in multiple European markets. Priority Telecom utilizes self-healing fibre optic rings to provide high quality competitive telephone services to business and carrier customers.About UPC
Headquartered in Amsterdam, UPC is one of the most innovative broadband communications companies in Europe and owns and operates the largest pan-European group of broadband communication networks. UPC provides cable television, telephony, high speed Internet access and programming services in ten countries across Europe and in Israel. As of February 1999, UPC's systems passed approximately 4.8 million homes with 3.5 million basic cable subscribers, of which approximately 500.000 take an expanded tier service. In addition, UPC had 92,600 telephone access lines and 20,500 carrier select customers, as well as 32,335 broadband Internet access subscribers. UPC completed an IPO in February 1999 ands its shares are listed on the Amsterdam Stock Exchange ("UPC") and NASDAQ ("UPCOY").UPC is a consolidated subsidiary of United International Holdings, Inc. (UIH) (NASDAQ: "UIHIA"). Microsoft Corporation has an interest of approximately 7.8% in UPC.
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