News Release

Hong Kong Broadband Network Offers Pay-TV Service with Cisco Optical Core Network

High-Availability Network Enables Multi-service Capability and Substantial Cost Savings
Apr 15, 2004

HONG KONG, April 15, 2004 - Cisco Systems® today announced that Hong Kong Broadband Network Ltd (HKBN), a subsidiary of the City Telecom Group, has deployed the Cisco® Optical Core Network solution to build a high-availability, high-bandwidth network for its new digital pay-TV service. The Cisco solution has provided HKBN with extensive bandwidth and multi-service capability to generate additional revenue streams and achieve substantial cost savings for its continuous business expansion.

The announcement marks another collaborative effort between Cisco and HKBN. In 2002, HKBN established the world's largest Metro Ethernet broadband network with Cisco's Metro Ethernet Switching solution, realizing its goal as a "triple-play operator" in offering voice, data and video services over a single network.

As HKBN continues to expand and introduce new fixed-network services, it required more advanced, yet cost-efficient technology to deliver carrier-class services. The Cisco Optical Core Network solution provides the company with adequate bandwidth and multi-service capability to introduce high-quality video, voice and data services. In addition, it enables HKBN to extensively reduce its operating costs by replacing existing telecommunications circuits leased from incumbent carriers with its own optical core.

"Offering diversified products and services are key to win in the competitive telecommunications market. With our own optical core we are equipped with an unrivalled edge to meet varying customer needs in the ever-changing market. It also allows us to offer more high-quality services in a speedy manner, thus creating additional revenue streams more easily," said Ricky Wong, chairman of HKBN. "We have had a long and successful relationship with Cisco. The implementation of the Cisco Optical Core Network solution will complement our existing Metro Ethernet network to bring further cost advantages, network capacity and reliability."

The Cisco Optical Core Network solution empowers HKBN with high data capacity to deliver up to 200 digital pay-TV channels via MPEG-2 4.5M to 10M with DVD visual quality. It also features interactive pay-TV elements and enables PC or TV connection with the aid of a set-top box. Because of the network's easily managed and scalable nature, HKBN has rapidly extended its network coverage to 1.2 million homes passed and 550 commercial buildings.

"The Cisco solution has laid a solid foundation for our future development. Building on such a strong network backbone, HKBN is ready to branch out new services to generate additional revenue and accelerate our speed to market. We are also actively looking into the possibility of wholesaling network capacity as well as 3G [third-generation] mobile services," continued Wong.

The Cisco® solution includes the Cisco ONS 15454 SONET/SDH Multiservice Provisioning Platform (MSPP); Cisco Catalyst® 6500, Catalyst 4500, Catalyst 3350, and Catalyst 2950 series switches; and Cisco 2600XM Series routers. The Cisco ONS 15454 SONET/SDH MSPP with integrated dense wavelength-division multiplexing (DWDM) capabilities is the only platform available in the market that enables HKBN to converge its legacy voice and data services and its new pay-TV service into a single platform, and at the same time offer Layer 2 and 3 Internet Protocol (IP) services on the same platform using Cisco's industry-leading Resilient Packet Ring (RPR)-ready ML Series line cards.

"We are very pleased to complete another successful project in collaboration with HKBN. Cisco's Optical Core Network solution allows service providers like HKBN to expand their service offerings while maximizing network efficiency in a cost-effective way," said Frankie Sum, managing director of Cisco Systems North Asia.

The project was initiated by leading systems integrator Macroview Telecom in Hong Kong. Commenced in early 2003, the project is expected to be completed by December 2004.

About HKBN

Hong Kong Broadband Network Limited ("HKBN") is one of the major operators in the fixed telecom network service market in Hong Kong, extended its network coverage to 1.2m homepass, representing 60% of the total number of households all over Hong Kong by the end of 2002. With the support of a state-of-art network platform, HKBN realized its target for "triple-play" strategy : delivering broadband Internet access, local telephony and pay-TV services, devoting to further develop the fixed telecom network business. For more information of HKBN, please visit