News Release

Chilesat Selects Cisco IP+Optical Technologies to Light Networks

Chilesat's Innovative Fiber Optic Network Combines IP+Optical Technologies with DWDM and MPLS-enabled IP Features to Expand Service Offerings and Extend Market Reach
Jan 14, 2002

SANTIAGO, January 14, 2002 - Chilesat today announced the lighting of its innovative fiber optic network which employs Cisco IP+Optical networking equipment to increase capacity and brings advanced services to new and existing customers. The network has been deployed and serving live customer traffic with several months of uninterrupted service. Chilesat's new fiber optic network doubled the company's service capacity using technologies such as dense wavelength division multiplexing (DWDM) and multiprotocol label switching (MPLS)-enabled IP, becoming the first Latin American network with these features.

The new infrastructure is based on Cisco Systems' Complete Optical Multiservice Edge and Transport (COMET) optical networking equipment including the ONS 15801 and Cisco Transport Manager along with Cisco Internet Routing technologies including 12000 series 7200 series, and 7500 series Internet Routers. The project was implemented and financed by IBM, with a US$ 10 million investment.

"With several months of uninterrupted service from Arica to Valvivia, Cisco's technology has enabled us to say that the results of this project are successful. We chose Cisco because of their IP+Optical networking leadership and highest caliber customer support and because of our strong confidence Cisco will continue to be a technology innovator driving new developments in networking," said Alejandro Ulloa, Chilesat's general manager.

To Luis Siles, IBM Chile general manager, IBM's participation in this project is very important. "This network creates the necessary infrastructure to implement nationwide networks that will provide the bandwidth that will integrate Chilean companies business with e-business productivity. We are absolutely convinced that over this network new telecommunication services will be developed, adding great value to this market in Chile."

Chilesat's innovative IP+Optical network provides the carrier-class, high-capacity broadband connectivity and redundant bandwidth requirements for service providers and advanced IP services for corporate customers, enabling Chilesat to extend its market reach in addition to increasing capacity.

Bringing greater capacity, connectivity, and reliability to existing telephony, Internet, and corporate customers, including Telex Chile Holding companies, Chilesat can now create new business opportunities for broadband service providers such as cable companies. Chilesat's expanded capabilities also enable it to deliver new IP services such as virtual private networking (VPN) to its corporate customers.

According to Alvaro Croquevielle, Cisco Systems Chile general manager, "The new Chilesat network is a substantial enhancement to the existing broadband infrastructure. This enables Chilesat to increase its fiber optic network capacity, add new service offerings, and become a pioneer for communications services in Chile and in Latin America."

The new network integrates DWDM and IP-MPLS technologies to the existing synchronous digital hierarchy (SDH) infrastructure. Utilizing the globally proven Cisco ONS 15801 Long-Haul DWDM System for cost effective, high-speed transport, Chilesat achieves a dramatic increase in transport capacity by combining and transmitting multiple signals simultaneously at different wavelengths on the same fiber.

Chilesat also employs the Cisco Transport Manager element management system to streamline efficient fault, configuration, performance and security management. Cisco Transport Manager is the single integrated optical element management system for the entire Cisco COMET portfolio of optical networking products.

Combining IP+Optical to bring increased intelligence to its network, Chilesat implemented MPLS-enabled IP capabilities with Cisco 12000 series, 7200 series, and 7500 series Internet Routers, enabling secure transport of multiple independent networks over the IP core. With these technologies Chilesat can now offer VPN service to companies that need high speed connections to their branch offices along with Internet and Extranet access, Quality of Service (QoS), and flexible, managed bandwidth.

In addition to equipment financing, IBM Integrated Technology Services Division provided the implementation, deployment, and network support.