HONG KONG -- 1 February 2000 -- Hong Kong Broadband Network Service Ltd (HKBN), a subsidiary of City Telecom (HK) Ltd (CTI), is in co-operation with Cisco Systems Inc, the worldwide leader in networking for the Internet, to build the network backbone and last mile portion of HKBN's multiservice broadband access network. Targeted at Hong Kong businesses and home users, the service is expected to wire up over 4.5 million customers within the next three years.
HKBN has already taken delivery of an initial order for Cisco equipment and services worth nearly US$4 million, capable of supporting up to 60,000 concurrent users. Due to be launched this month, the network will provide broadband access to the Internet, video on demand, financial services, online education, and a host of other multimedia services. CTI already creates content for its own web portal, iChannel (www.ichannel.com.hk), which offers a slew of entertainment and general interest content for the global Chinese community. In addition, CTI will soon offer VoIP (Voice over IP) telephony services over the cable network.
HKBN's cable broadband solution is built on Cisco's Catalyst switches, Gigabit Switch Router 12012, and the market-leading uBR 7200 Universal Broadband Router product family. The uBR line of Data-Over-Cable System Interface Specification (DOCSIS)-compatible broadband products combines the power of a Cisco 7200 series router with the high-speed network access of a cable modem termination system (CMTS), all in one package. By combining these two essential functions in a two-in-one router/cable modem box, the uBR offers a compact, manageable head-end product for CTI to deploy routing capability in every CMTS location, which improves network performance and reduces cost.
"Cisco is pleased to provide HKBN with a cost-effective and scalable solution for offering its customers innovative broadband cable solutions such as high-speed Internet access, cable telephony and entertainment services," said Todd Abbott, Cisco's Asia vice president. "HKBN's broadband network program demonstrates their clear commitment to becoming a world-class service provider."
"As an aggressive green field telecom service provider, CTI is rapidly expanding into new service areas," said Frankie Sum, managing director of Cisco Systems Hong Kong. "We are thrilled that they have chosen Cisco as their technology partner to introduce cable broadband services in Hong Kong, and we will continue to work closely with them as they introduce more telephony-based services."
"Being the first new license operator to make a solid investment in equipment, service and support to provide broadband service, HKBN has demonstrated its commitment and determination to offer state-of-the art cable broadband service in Hong Kong," said Ricky Wong, chairman of HKBN and CTI. "We are proud to be the first in the market, and we will continue to excel in our service quality. As a matter of fact, the strategic co-operation has combined CTI's broadband capabilities with Cisco's global wireless experience to form a very solid foundation for our future wireless broadband development."
According to Connie Hsu, an analyst with Pyramid Research, a division of the Economist Intelligence Unit (EIU), as bandwidth-intensive multimedia applications increase in an advanced market such as Hong Kong, broadband cable solutions offer significant competitive advantages. "This includes quick network roll out and the ability to deliver a wide range of services and content over a single platform," she said.
About CTI
As the second largest IDD (International Direct Dial) operator and Internet Service Provider (ISP) in Hong Kong, CTI now serves over 770,000 IDD customers and 355,000 Internet customers. CTI was listed on the Stock Exchange of Hong Kong in August 1997 and dual-listed on NASDAQ in November 1999. More information on CTI is available at http://www.ctihk.com.
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at http://www.cisco.com.
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