News Release

Ukrtelecom Brings New Generation Internet Services to Ukraine with Cisco IP Next Generation Network Technology

KYIV, Ukraine - March 23, 2005 - Cisco Systems® announced
Mar 23, 2005

KYIV, Ukraine - March 23, 2005 - Cisco Systems® announced today that Ukrtelecom, the largest national telecommunications operator in Ukraine, is rolling out a nationwide Cisco Internet Protocol (IP) Next Generation Network (NGN) to deliver innovative new services to consumers and businesses.

Working with Cisco Silver Certified channel partner, Priocom, Ukrtelecom has completed the upgrade of its backbone network connecting Kyiv to five regional centres and implemented Voice over IP termination and origination services. In 2004, Ukrtelecom's network capacity has increased at a rate of 57 percent and its Cisco-based IP Next Generation Network currently supports 26,000 Internet access ports. Ukrtelecom provides services to approximately 82 percent of fixed-line subscribers serving more than nine million customers countrywide.

Ukrtelecom is currently extending its metropolitan ring infrastructure using Cisco Metro Ethernet solutions to deliver Ethernet services and provide broadband aggregation to support broadband services to over 150,000 users. The company is also using Cisco Aironet wireless technology to provide wireless Internet access throughout Ukraine with the commercial launch of its Radiospot project in October 2004.

"We started working very closely with Cisco in 2000 to create a strategic network upgrade plan," said Ihor Tarasenko, Ukrtelecom Deputy Director, Advanced Technology Department. "The IP Next Generation Network proposed by Cisco optimised our investment and fulfilled our long-term business requirements. I believe Cisco's advice and understanding of our market have been invaluable in helping us to maintain our strong position and overcome the challenges of deregulation and greater competition. We now consider Cisco as more than a technology vendor, Cisco has become a valuable solution provider partner."

As part of the E-Ukraine program launched by the Ukrainian government, Ukrtelecom is aiming to deliver an additional 35,000 broadband access lines in 2005 to bring the total number of broadband access ports to 40,000.

The upgraded network will also provide the capability for Ukrtelecom to develop and deliver new high-margin, value-added services for Ukrainian businesses where there is a strong demand for Virtual Private Networks (VPNs) using Multiprotocol Label Switching (MPLS), broadband access, video-conferencing, video-on-demand, Voice over IP (VoIP) as a second line, and other next-generation services.

"Ukrtelecom has built one of the most advanced and resilient core networks in the Commonwealth of Independent States (CIS)," said Geraint Anderson, Vice President, Service Provider Wireline for Europe, Middle East & Africa, Cisco Systems. "Through the vision of the Ukrtelecom Advanced Technology Department, the company has created a scalable IP Next Generation Network infrastructure that will help accelerate the creation of new residential triple-play over IP services and high-speed broadband business services."

Ukrtelecom's IP Next Generation Network is built on the following Cisco technologies: Cisco 12000 Series routers in the core, Cisco 7600 Series routers at the edge, Cisco Catalyst 3750 Metro Series switches for the Metro Ethernet rings, Catalyst Intelligent Ethernet switches for subscriber access services and Cisco's PGW2200 softswitch to provide the SS7 interface to the PSTN network.

Ukrtelecom's Radiospot project uses Cisco Aironet wireless access points and Cisco Access Routers integrated with Cisco Building Broadband Service Manager billing system, delivered through Cisco Gold partner, S&T Soft Tronik.