News Release

New Countrywide IP Network to Connect 40 Towns and Deliver IP Data Services Across Romania

National fixed-wireless company Radiocomunicatii deploys MPLS/ATM solution built with technology from Cisco Systems
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Mar 25, 2003

BUCHAREST, Romania, March 12, 2002-Romanian telecommunications leader Radiocomunicatii is implementing a Multiprotocol Label Switching and Asynchronous Transfer Mode (MPLS/ATM) backbone network to link 40 Romanian towns and provide nationwide Internet Protocol (IP) data services to businesses by the end of the year. The new network will allow Radiocomunicatii to cost-effectively offer business users throughout Romania basic Internet connectivity and a wide range of IP services, including IP virtual private networks (VPNs), videoconferencing, IP telephony and international voice over IP.

The validity of the MPLS/ATM solution, which is built with technology from Cisco Systems®, is already proven by a pilot spanning Bucharest and six other Romanian cities.

By the end of 2002, Radiocomunicatii and Cisco Systems, working with the Cisco technology, had linked seven cities including Bucharest via an MPLS/ATM backbone. This project proved to Radiocomunicatii decision makers, government leaders and investors that the solution was technically viable, and well suited to the needs of Romania. The success of the pilot project convinced Radiocomunicatii to implement a nationwide MPLS/ATM backbone in December 2002. Deployment of the backbone linking 40 towns is under way. Harris Corporation is the prime contractor on the project.

"Cisco® has contributed much more than hardware. During the pilot, Cisco helped demonstrate the benefits of superimposing an MPLS layer on the basic ATM backbone-an addition that enables the network to carry more traffic while assuring quality of service. By demonstrating the market opportunities that the infrastructure would provide, such as the opportunity to offer a voice-over-IP service, Cisco was also able to help Radiocomunicatii build a more convincing business case for the backbone," said Ion Dorobantu, development executive director of Radiocomunicatii.

Technical challenges on the 40-town backbone project include the need to integrate the backbone with two different local-loop architectures. The backbone also has to be interfaced with Radiocomunicatii's radio lines instead of the more familiar fibre optics or legacy copper system. The pilot showed that these challenges could be successfully overcome.

Financing posed the most serious challenge, given some financial institutions' doubts about the communications market and about investment in Eastern Europe. Being able to point to the successful pilot helped to make Radiocomunicatii's proposition credible, as did the increasingly buoyant nature of the Romanian economy. USA ExIm Bank (the Export-Import Bank of the United States) is providing USD 85 million of funding to Radiocomunicatii to modernize the radio broadcasting and telecommunication infrastructure and to cover the 40-town rollout.

"Close working relationships have been established between Radiocomunicatii and Cisco Systems, with exchange of ideas and know-how at executive, management and technician levels. The transition to a packet network that delivers all services will be en evolutionary one, and Cisco can help service providers reach this goal regardless of their starting point. Cisco has already helped our service provider partners to build the world's largest and most reliable Frame Relay, ATM, Ethernet, MPLS, and IP networks in the world." said Dan Garlasu, account manager, Cisco Systems Romania.

Offering new data services should help Radiocomunicatii generate new revenue by expanding its customer base, by attracting organisations from local and central government and from the education sector, and by presenting additional value to its existing business and private customers.

Radiocomunicatii's First Major IP Venture Called for New Skills

Recognising the worldwide scarcity of IP skills, not just in knowledge of Cisco equipment but in general, Radiocomunicatii is also teaching its employees through the Cisco Networking AcademyTM program, and is training networking professionals on behalf of other companies.

Radiocomunicatii's nonprofit Professional Training Center has recently celebrated the graduation of its first class of instructors, who will educate 200 of Radiocomunicatii 's technical staff nationwide. Radiocomunicatii has set a high standard for the training, requiring its employees to score 90 percent on all four modules compared with the usual passing mark of 80 percent.

About Radiocomunicatii s. a.

Radiocomunicatii s.a. is Romania's leading fixed-radio communications provider. Created in 1991 as a result of a reorganisation of Rom Post Telecom, it became a limited company in 1998.

Activities include the operation, development and modernisation of Romania's national fixed-radio communication systems. In present, Radiocomunicatii s.a.'s national network covers more than half of the urban population, and is considered the most developed micro-wave network in central and Eastern Europe. It has the largest satellite earth station in southeast Europe.

In preparation for privatisation and deregulation of the telecommunications market, Radiocomunicatii s.a. is upgrading its infrastructure in order to diversify its telecommunications services.

About Cisco Systems

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