News Release

Oulu Telecom (OT) Uses Cisco Long-Reach Ethernet (LRE) To Deliver Digital TV And Broadband Internet

OT Delivers Next-Generation Broadband Services Over Existing Infrastructure
Mar 14, 2002

CeBIT, Hannover, Germany - March 14, 2002 - Oulu Telecom (OT) a Finnish telecommunications company and Cisco Systems, Inc. (NASDAQ: CSCO), the worldwide leader in networking for the Internet, announced today that Oulu Telecom is deploying Cisco Long-Reach Ethernet (LRE) to offer next-generation broadband services to both residential and business customers in Northern Finland. The solution allows users to watch real-time digital television broadcasts and simultaneously use broadband Internet services at up to 15 Mbp/s via a TV set.

Oulu Telecom has been offering broadband services based on Cisco's ADSL technology in Finland since 1999. OT chose Cisco LRE technology to enable it to respond to the increasing demand for broadband services and to deliver the service to customers efficiently and cost-effectively, both in metropolitan and rural areas of Northern Finland.

LRE brings the customer a clear improvement in access speed. Under optimal conditions, ADSL can provide a downstream performance of about 8 Mbps and an upstream performance of about 800 Kbps. Long-Reach Ethernet is faster and less expensive to deploy and maintain than ATM-based access technologies enabling symmetrical connections of up to 15 Mbps.

"Cisco was an obvious choice as its LRE technology considerably extends the usage of Ethernet, whilst utilising the existing telephone network, digital telephone and ISDN lines," said Risto Siivola, managing director of Oulu Telecom. "The technology delivers cost-effective, high-performance broadband access to hotels, residential units, office buildings and enterprise facility environments such as educational campuses."

The solution implemented by OT helps enable content providers to offer their services in an easy and cost-effective way. In the core network, broadband is implemented by switching over from ATM to IP technology, and in the access network from ADSL to Long-Reach Ethernet. This is a natural evolutionary step for an innovative operator like Oulu Telecom.

Siivola continued, "The breadth of Cisco's products helps enable us to easily deploy and offer services like high-speed data transfer, fast LAN and VPN connections and real-time video delivery over our network. The ability to offer this and optimise safe delivery were the key factors in our decision to choose Cisco."

Oulu Telecom developed the solution using Cisco Catalyst 2924-LRE-XL and Catalyst 2912-LRE-XL Long-Reach Ethernet switches, Cisco LRE 48 POTS Splitter and Cisco 575 LRE CPE products.

"This next generation broadband network helps allow Oulu Telecom to expand their service offerings in a very flexible and cost-effective way. The company has extensive high-level knowledge of business and technology, which has kept it at the leading edge of development in utilising both new services and technologies to the benefit of their customers," explains Ari Rikkila, Account Manager for Cisco Systems Finland. "The model Oulu Telecom has created provides valuable insights for other service providers working to offer next generation broadband connectivity."

About Oulu Telecom

Oulu Telecom is a leading Finnish telecommunications company operating in Northern Finland. Oulu Telecom's focus is to work close to the customer in the local market developing products and services, which support the development of the local community. The company employed 380 people in 2000 with turnover of 48 million euros and investments around 27 million euros. Oulu Telecom is leading the way on Internet, mobile, data and security services in Finland.

Oulu Telecom is a part of Finnet Association, which is a lobbying and co-operation organisation for the private telecom operators and their subsidiaries and associated companies in Finland.