News Release

Cisco Takes the Lead in the Next Generation DSLAM Market, According to Synergy

Service Providers are Realizing the Value of the Cisco 6000
Nov 20, 2000

Service Providers are Realizing the Value of the Cisco 6000 IP DSL Switch, Which Allows for Delivery of Multiple Value-Added Services and Efficient Management of DSL Networks to Gain a Competitive Lead

SAN JOSE, Calif., November 20, 2000 - Continuing its momentum in the DSL market space and helping service providers make DSL one of the most widespread access technologies, Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, today announced that Synergy Research Group ranked it number one in the new market category of Next Generation DSLAMs. In Synergy's independent report, Cisco was number one in three of the Next Generation DSLAM categories: which include ADSL ports shipped in the third quarter of this year, ADSL ports shipped year to date and overall ports shipped year to date.

Synergy reported Cisco with 49.5% of ADSL ports shipped year to date in which Cisco has 20% more market share than the closest competitor; 42.9% of ADSL ports shipped in the third quarter; and 36.6% of overall ports shipped year to date in the Next Generation DSLAM category. According to the report, the Next Generation DSLAM market is 40% of the overall DSL market.

Because of the growing demand for solutions that allow service providers to create more powerful and scalable DSL networks, Synergy has added a new category to its broadband market-share report, featuring the Next Generation DSLAM. These DSLAMs provide capabilities for managing different types of traffic, such as data, voice and video, which allow for the delivery of value-added services. The Cisco 6000 family of IP DSL switches meets the requirements of this new category and takes the lead. Older-generation DSLAMs are limited to offering only undifferentiated, high-speed Internet service, creating a barrier to service providers for increasing their revenue potential.

"We saw a need to add a new category of DSLAMs to our broadband market-share reports," said Jeremy Duke, President of Synergy Research Group. "The traditional DSLAM is quickly becoming outdated and isn't equipped to handle the new requirements for bandwidth and new value-added services that service provider customers are now demanding. We see the market moving toward DSL solutions that provide quality-of-service capabilities that service providers will need to differentiate themselves in an increasingly competitive service market and to pursue a richer set of value-added services for their subscribers."

In April of this year, Cisco announced a software upgrade to its Next Generation DSLAM, the Cisco 6000 IP DSL switch, to enable the flexibility and scalability of IP to the rich set of ATM controls available in its Next Generation DSLAM. The Cisco IP DSL switch product family is part of the GlobalDSL strategy, which is designed to help service providers overcome barriers to DSL deployment.

"To be competitive in the DSL market space, service providers need solutions that allow flexibility for managing bandwidth for the addition of new services," said Kambiz Hooshmand, vice president and general manager for the Cisco DSL business unit. "Our Next Generation Cisco 6000 IP DSL switch is the ultimate solution for service providers that want to easily expand their network and grow their revenues by offering value-added services, such as data, voice and video. We are pleased to see that Synergy has created the category of Next Generation DSLAMs, which acknowledges the fact that service providers worldwide have unanimously selected these types of DSLAMs within the past year to deliver more profitable services."

Cisco DSL Leadership

Cisco includes a DSL customer base of successful service providers across the world, which includes 56 customers that were added since the beginning of this year.

About Cisco Broadband Solutions

Cisco is the market leader in deployment of broadband solutions, delivering service-enabling infrastructures for cable, DSL and wireless customers. Cisco multi-service broadband solutions enable service providers to rapidly deploy a breadth of revenue-generating services, such as corporate Internet/intranet access, secure virtual private networks (VPNs), residential and business voice-over-IP services, and entertainment services, such as digital video or streaming media. With Cisco multi-service broadband solutions, service providers also gain access to world-class professional services, business programs and the Cisco New World Ecosystem of best-of-breed partners.