News Release

New World Telephone Pioneers MPLS-based Gigalink International VPN Service in Collaboration with Cisco Systems

Cost-Effective Network Communications Become Reality
Nov 20, 2001

HONG KONG -- 20 November 2001 -- New World Telephone Limited (NWT), a wholly owned telecommunications subsidiary of New World Development, announced today that it is collaborating with Cisco Systems to pioneer an MPLS (Multi-Protocol Label Switching) based Gigalink International VPN (Virtual Private Network) service, the first of its kind in Hong Kong.

The adoption of MPLS provides a competitive advantage for NWT VPN customers, by delivering data, text, voice and graphics faster, with better flexibility and significant cost saving.

MPLS is the latest protocol for network transmission that allows carriers to reduce operational costs, simplify traffic management and support tiered IP services. MPLS provides traffic-engineering capabilities that facilities efficient and reliable network operations while simultaneously optimizing network resource utilization and traffic performance. Through the deployment of MPLS, New World Telephone can support many different IP VPNs. To the user, the VPN functions like a private network and offers customers a secure service that is highly scalable and very easy to manage.

Ensuring Quality of Service (QoS), the adoption of MPLS greatly differentiates NWT's Gigalink International VPN service from those of its competitors by maximising network capacity and offering enhanced bandwidth services for the benefit of customers.

Albert Wong, Managing Director of NWT, said: "We are proud to be the first service provider to bring the benefits of MPLS to Hong Kong. We have long planned to extend our network and service beyond Hong Kong and the launch of MPLS based Gigalink International VPN service now turns our plan into reality. It not only demonstrates our continued commitment to offer best-in-class IP based service to the market, but also sets a new communication standard because of its strong features and proven delivery advantages."

"We are pleased and excited to be working with New World Telephone to introduce MPLS VPN service to customers in Hong Kong," said Gary Jackson, Vice President for Asia Operations, Cisco Systems. "We believe that the combination of Cisco infrastructure and NWT service will bring to market one of the best VPN solutions in Hong Kong and the region."

Scheduled to be officially launched in the first quarter of 2002, NWT's Gigalink International VPN service will be first available in four markets USA, China, Taiwan and Hong Kong. To extend this service to mainland China, NWT has forged relationship relationship with a major carrier in mainland China, while in the USA and Taiwan, NWT will provide service through its own point of presence (POP).

Paul Ho, Marketing Director of NWT, further points out that the MPLS-based Gigalink International VPN service targets cost-conscious SMEs and corporations with international operations who seek a reliable and efficient IP network with QoS akin to the comparatively expensive point-to-point IPLC network. It is believed that a cost-effective network communications service can enable corporations of all sizes to maintain contact with their overseas offices dispersed in different parts of the world during the current economic situation.

Unlike IPLC and Frame Relay services, which can only provide end-to-end connection, MPLS-based Gigalink International VPN service brings flexibility by providing multiple points of connectivity for different class of applications.

NWT will also bundle the service with supporting services including round-the-clock global network management and emergency support. To enhance security, NWT has planned to adopt advanced encryption methods and offers extra protection to security-conscious customers through the use of digital certificates to ensure integrity and authenticity of data.

Meanwhile, Cisco Systems announced that NWT has become a "Cisco Powered Network" (CPN) member with its MPLS VPN. NWT is the first "IP over Fibre" infrastructure based CPN member in Hong Kong.

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