AUSTRALIA -- 1 March 2000 -- Recently launched service provider Request DSL Pty Ltd (Request DSL), has announced plans to deploy a nationwide broadband network to serve Australian businesses and consumers using ADSL (asymmetrical digital subscriber line) technology provided by Cisco Systems, the worldwide leader in networking for the Internet.
Request DSL - soon to become a wholly-owned subsidiary of ASX-listed Pilbara Mines NL (ASX: PIL) - today signed a binding Memorandum of Understanding (MOU) with Cisco Systems covering an initial 3-month period, under which Request DSL will work exclusively with Cisco or its nominated partners to roll out a high bandwidth ADSL network across Australia. During the 90-day period, both parties will investigate developing a longer-term relationship.
Cisco Systems is a leading player in the ADSL market in the United States. The company recently announced a second-quarter profit of US$906 million on revenue of US$4.35 billion. In terms of market capitalisation, Cisco is second only in size to Microsoft Corporation.
Pilbara Director and Request DSL Chairman, Mr Ross Smith, said "This is a very significant and exciting alliance for Request DSL which will enable us to accelerate the deployment of our ADSL network nationally."
"Cisco is at the leading edge of ADSL deployment internationally and will bring unparalleled expertise backed up by an impressive range of hardware solutions that will give Request DSL a significant edge in this fast-moving market," he added.
"Request DSL's new network will give businesses and consumers throughout Australia more affordable access to new and emerging Internet and multi-media applications," said Kurt Hansen, General Manager, Telecommunications and Service Provider Line of Business, Cisco Systems Australia. "We are delighted to be working with Request DSL on this enterprising initiative."
ADSL technology, which is currently used in the United States, Singapore, Europe and New Zealand, can be deployed relatively easily over existing copper wire-based telecommunications infrastructure. ADSL boosts the capacity of traditional copper wire-based networks, enabling them to transmit data up to 150 times faster than current modem or ISDN copper delivery and bringing broadband access within reach of millions of Australian homes for the first time.
Mr Smith said Request DSL would work closely with Cisco to deploy ADSL multiplexers in local telephone exchanges to provide coverage in major capital cities in Australia.
"Our plan initially was to focus first on metropolitan Perth before moving quickly to expand into Adelaide and Brisbane, followed by Sydney and Melbourne," Mr Smith said. "However, this partnership will give us the capacity to draw on Cisco's global experience in ADSL and expand more rapidly into the Eastern States."
ADSL offers a superior solution because it can be easily deployed over existing infrastructure, it provides a direct, dedicated and secure channel between the customer and the service provider, it is scalable and does not require manual dial-up connections.
An ADSL network can be rolled-out by installing ADSL multiplexers at existing telephone exchanges, with the only other special equipment required being a compatible modem at the other end.
"Other broadband options such as installing fibre optic cable to the kerb or the home are still prohibitively expensive and cable TV solutions require frequent upgrading to maintain network performance, as well as potentially having problems with data security," said Request DSL's Managing Director, Mr Greg Pennefather.
"ADSL uses existing telephone lines and provides a direct service between the service provider and the customer, providing a dedicated secure channel," he added.
Pilbara's proposed acquisition of an 80% interest in Request DSL, announced earlier this month, remains subject to shareholder approval - which is expected by the end of March 2000. Pilbara recently announced a A$1 million placement to cover the cost of the acquisition and working capital requirements.
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