News Release

ChinaNet Deploys Cisco IP+Optical Solution to Launch China's First 10 Gbps IP over DWDM Network

Cisco ONS 15801 Delivers Greater Service Capacity with High- Speed DWDM Transmission between Shanghai and Hangzhou
Jan 17, 2002

BEIJING, P.R. China, January 17, 2002 - China Telecom today announced the deployment of Cisco ONS 15801 Long-Haul DWDM Systems over its ChinaNet backbone network, between Shanghai and Hangzhou, successfully launching China's first 10 Gbps long-haul system. Combining the Cisco ONS 15801 with Cisco 12400 series Internet Routers (see "ChinaNet Boosts Backbone to 10 Gigabit Speeds with Cisco 12400 Internet Routers," Dec. 10, 2001), China Telecom has significantly enhanced its IP+Optical network and further advanced the capacity of China's Internet backbone. ChinaNet's innovative infrastructure is China's first IP+Optical backbone network based on 10 Gbps dense wavelength division multiplexing (DWDM) transmission.

"As the leading player in China's telecom industry, China Telecom is committed to becoming a large-scale, internationally competitive corporation through the development of world-class backbone networks. As China's Internet market continues to expand, ChinaNet is upgrading to meet the increasing demand for bandwidth," said Mr. Leng Rongquan, the Deputy General Manager of China Telecom.

With the addition of the ONS 15801 to its backbone network, China Telecom is benefiting from Cisco's extensive experience in equipment manufacture for 10 Gbps long-haul DWDM transmission as well as high speed Internet routing, allowing ChinaNet to transport IP packets directly over DWDM. This bypasses the SDH layer reducing capital expenditures, operating costs and network complexity. Utilizing a complete 10 Gbps IP+Optical solution from Cisco also enabled ChinaNet to achieve greater cost and deployment efficiencies.

Mr. Jia-bin Duh, Vice President at Cisco and President of Cisco China said, "Through our relationship with China Telecom, Cisco has participated in the vision which has led to construction of the first, second and third phases of ChinaNet. We will continue to provide leading IP+Optical networking technology solutions and services to accelerate the construction of China's innovative network infrastructure."

The successful launch of the enhanced Internet backbone underscores China's commitment to building a state-of-the-art-network with capacities that rival those of the world's most advanced information technology economies. The network has been fully commissioned with excellent results and is already in operation carrying live traffic through China Telecom's network. The enhancement also reinforces China Telecom's position as China's leading fixed-line telecom operator, and places it among the world's most technologically advanced telecommunications companies.

With this infrastructure, ChinaNet has significantly increased bandwidth between the high-traffic Shanghai and Hangzhou backbone nodes, quadrupling capacity over the previous 2.5 Gbps transmission. Additionally, ChinaNet is able to utilize its high speed IP+Optical network to deliver valuable services such as IP VPNs (Virtual Private Networks), voice over IP (VOIP), and video on demand to its growing customer base.

Cisco is a leading supplier of long-haul DWDM solutions worldwide with systems operating in all continents and thousands of 10 Gbps interfaces deployed since 1998. The ONS 15801 is part of the Cisco Complete Optical Multiservice Edge and Transport (COMET) portfolio. The Cisco COMET product line offers maximum service velocity, density, variety, and capacity, building the foundation to accelerate IP+Optical networking.