HONG KONG, March 13, 2001Cisco Systems Inc., the worldwide leader in networking for the Internet, today signed a multi-million U.S. dollar contract with New World Telephone Ltd., a Hong Kong-based broadband carrier and telecommunications service provider, to supply next generation broadband network products and solutions to Hong Kong. New World Telephone's network will be based on Cisco's unique Long-Reach Ethernet (LRE) technology and IP+Optical networking products.

With this contract, New World Telephone becomes the first Asian telecommunications company to begin commercial deployment of Cisco Systems' LRE technology via a core Dynamic Packet Transport (DPT) optical backbone, allowing commercial customers to access a broadband network with an end-to-end bandwidth of 10 Megabits per second (Mbps).

LRE is an innovative broadband access and delivery service technology for scalable deployment of high-speed Ethernet services on existing voice grade copper wire enabling enterprises, building operators and service providers to quickly and easily deploy high speed data services. By using LRE, customers can eliminate the need for costly infrastructure upgrades by using existing telephone wire.

"In general, businesses pay more for office space that offer high-speed access and likewise, and a business traveler will prefer to stay in a hotel that has broadband access rather than using a dial-up connection or slow-speed network," said Frankie Sum, managing director, Cisco Systems (HK) Ltd. "The amplified capacity of an optically enabled Cisco network allows New World Telephone to offer richer, more complex and higher-value applications to customers at a fraction of the time and cost."

Capable of handling the simultaneous delivery of voice, video and data services at 5 - 15 Megabits per second (Mbps), LRE utilizes existing telephone wire at distances of up to 4,000 feet. This enables carriers to utilize the benefits of Ethernet infrastructures where they previously could not due to distance limitations or older wiring.

LRE is also compatible with asymmetric digital subscriber lines (ADSL), allowing service providers to deploy LRE to buildings where broadband access already exists. As Cisco LRE uses pre-existing wiring, from the view of infrastructure modifications and cost, high-speed Internet access and other communication services can be deployed more quickly into older buildings than before.

While LRE technology provides old buildings with a broadband last mile solution and enables the high-bandwidth services that users want, the New World Telephone will also be able to wire up new buildings already using Ethernet-grade cables by deploying the traditional LAN connectivity approach in the rollout of their next generation broadband network.

"The introduction of LRE technology in Hong Kong is in anticipation of the explosive growth in the demand for broadband particularly from the commercial sector," said Albert Wong, managing director of New World Telephone Ltd. "We believe our customers will be able to benefit through the reduction of operation and equipment costs, streamlining data delivery, and the leveraging of new revenue streams. By embracing the most advanced technology from Cisco, New World Telephone aims to become a fully-fledged Next Generation broadband multimedia communications provider."

A multitude of different Internet Protocol (IP) services can be delivered via an LRE including video conferencing, IP Television (IPTV) and Voice-Over IP (VoIP) telephony. The technology allows data to be delivered at a much faster speed and with greater consistency than current broadband techniquesallowing for crisp, clear and concise voice, video and data applications.

The LRE technology solution includes the Cisco Catalyst 2900 Series LRE XL Switches and the Cisco 575 LRE CPE Device. It also includes the Cisco LRE 48 Plain Old Telephone Service (POTS) Splitter, a cost-effective high-density device that is ideal for buildings with on-site PBX systems, and where POTS traffic must co-exist over the same copper wiring. The Cisco LRE 48 POTS Splitter enables the co-existence of LRE and POTS on the same telephone line.

"Cisco optical core products enable all network elements to communicate with each other, providing simplified, cost-effective, provisioned bandwidth for quicker revenues. These network elements may include plain old telephone service (POTS), digital subscriber lines (DSL), cable modems, leased lines or Synchronous Optical Networks (SONET)," Mr. Sum added.

With this robust broadband technology, building owners and service providers can deliver a plethora of new services ranging from Internet and corporate access to new entertainment and multimedia applications while remaining competitive and preserving their existing telecom infrastructures.