News Release

Protel Gains Competitive Edge, Marketability with New IP Infrastructure from Cisco

Mexican Telecom Company Expects Substantial Revenue, Customer Gains by Offering VoIP, Data Services
Oct 13, 1999

SAN JOSE, Calif. -- October 13, 1999 -- Cisco Systems, Inc., the worldwide leader in networking for the Internet, announced today that Operadora Protel SA de CV (Protel), a leading telecommunications company based in Mexico City, has standardized on a New World platform based on the Internet Protocol (IP) that allows the company to offer a host of new value-added, Internet-based services. Thanks to its new Cisco infrastructure, Protel is able to provide popular, leading-edge services required by its customers, including virtual private networks (VPNs), virtual private dial-up networks (VPDN) and Internet access. Soon, Protel also will work directly with its customers to develop new and flexible integrated services tailored specifically to their needs.

"Protel is committed to providing new, customer-driven service offerings based on industry leading technology," said Benigno Perez-Lizaur, Protel CEO. "These innovative services will help our customers increase their productivity and help them develop business solutions that will make them more successful and profitable." In addition, these new services will enable Protel to differentiate itself in a very crowded Mexican telecommunications market. With such differentiation, Protel expects to rapidly grow its customer and revenue base.

"We are very pleased that Protel has standardized on Cisco New World solutions," said Larry Lang, vice president of Cisco Systems' service provider line of business. "Protel joins the vanguard of telecom companies that have selected Cisco as they move into the New World of Internet and voice over IP (VoIP) and VPN services."

A "Competitive Advantage"

Protel selected Cisco as a partner due to Cisco's wide range of solutions for the telecom marketplace, as well as Cisco's continuous focus on research and development, and committment to business success. To Protel, these qualities translate into greater innovation of services, which leads to higher levels of customer satisfaction. "Having Cisco as an end-to-end supplier reduces the time to test new services and minimizes challenges during implementation and operations," said Antonio Trevino, vice president of Protel's multi-service business unit. "This reduces our time to market, which gives us a distinct competitive advantage."

Protel's Cisco-based infrastructure includes:

  • Cisco 12000-series Gigabit Switch Routers (GSRs), which perform Internet routing and switching at gigabit speeds. These core routers have been placed at Protel's principle locations in Mexico City, Guadalajara, Monterrey and Irapuato
  • Cisco 7200 VXR high-performance routers
  • Cisco AS5300 voice gateways and dial shelves
  • Cisco 3600-series routers

In all, Protel has installed Cisco equipment in 37 cities throughout Mexico.

New Lines of Revenue

Until its recent deployment of Cisco equipment, Protel had a traditional, Old World-style network that delivered only voice-based services, such as long distance, 800 and 900 numbers and pre-paid calling cards. With its new infrastructure, Protel is able to offer all the old services that customers rely upon. But, as a multi-service provider, the company also is able to quickly develop and introduce emerging, IP-based services that will represent the core of its growth far into the new millenium.

The new Cisco network also has solved problems that nag most telecomm providers: network congestion and bandwidth optimization. The Cisco-based environment will allow Protel to scale its network quickly and cost-effectively. "Most important of all, we have found new and exciting business opportunities," said Perez-Lizaur. "We also have established a new approach to our customers that will enable us to create new lines of revenue."


Operadora Protel, S.A. de C.V., "Protel", one of Mexico's leading long distance companies, was founded in 1995. Protel specializes in selling long distance services to commercial customers throughout Mexico and operates one of the country's international long distance gateways, with licenses in the United States, Mexico and Central America. As one of the nation's most viable long distance telephone companies, Protel has its own fiber optic network, currently serving 51 cities in Mexico. Protel has 14 national offices and two international offices (Guatemala and Dallas, Texas).

Cisco Systems

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

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