SAN JOSE, Calif. - 29 February 2000 - Cisco Systems, the worldwide leader in networking for the Internet, today signed a Memorandum of Understanding (MOU) with Korea Thrunet Co. Ltd. (NASDAQ: KOREA), Korea's leading supplier of high-speed Internet services and corporate leased lines.
Under terms of the agreement, Korea Thrunet will leverage Cisco technology and services to deploy next generation IP (Internet Protocol) infrastructure that integrates combined voice, video and data traffic together with new broadband cable services and applications. In turn Cisco will support Korea Thrunet in the development of these applications, many of which are aimed at enhancing the firm's services and reaching new markets.
The new applications, to be announced in due course, are expected to benefit Korea Thrunet's broadband cable subscriber base, which has increased to 155,710 as of 31 January 2000, representing an 841 percent increase year-over-year. Korea Thrunet says it is adding more than 20,000 new cable data subscribers a month.
According to market researcher IDC, Korea remains one of the largest Internet markets in Asia with more than 3.26 million registered users in 1999. According to Korean government estimates, the number of actual users is as high as 12 million. IDC predicts that registered users will reach more than 10.18 million by 2004, with revenues from Internet commerce revenue forecast to amount to U.S. $17.6 billion.
"The strategic role of the Internet and its impact on people, companies, countries and governments is unprecedented and represents a major force behind the strongest global economy in history," said Mr. John Chambers, Cisco's president and CEO. "This agreement reaffirms our commitment to bringing Internet access, applications and services to every country worldwide and demonstrates the global reach of the Internet economy."
"The agreement cements our long working relationship with the world's largest provider of Internet hardware products and services," said Mr. Kim Jong-Kil, Korea Thrunet's president and CEO. "We strongly believe that we will be able to increase our market share together as a direct result of this agreement and the widespread usage of Cisco products and services."Korea Thrunet will leverage Cisco's products across its entire network to increase capacity and reduce operational costs. The company will also roll out additional high speed Internet access services over cable TV networks. On the marketing front, Korea Thrunet will participate in a Cisco branding programme designating its services as a Cisco Powered Network (CPN) services.