News Release

China TieTong Again Selects Cisco for Expansion of its CRNET Backbone Network

Cisco IP/MPLS Technology to Enhance Network Capacity and Support Value-Added Services
Jun 28, 2005

BEIJING, June 22, 2005-Cisco Systems® today announced today that China TieTong (formerly China Railcom) has begun migration to a Cisco IP Next-Generation Network (IP NGN) for the latest expansion of its CRNET backbone With this, China TieTong continues its culture of innovation with voice, video, and data ("triple play") service offerings that provide enhanced performance, greater simplicity and better value for its customers. The new network, based on Cisco Internet Protocol (IP)/Multiprotocol Label Switching (MPLS) technology, is expected to increase coverage to 250 cities from the current 129, further boosting the customer base through increased number of transmission routes and capacity.

IP NGN is a Cisco strategy enabling service provider migration to all-Internet Protocol (IP) networks. IP NGN deployment will increase China TieTong's ability to deliver innovative new services, improve its operational and capital expenditure efficiencies and advance the network and service control that it and its customers need for long-term business success.

China TieTong's CRNET backbone network is the first large-scale IP/MPLS broadband carrier network, with bandwidth of 10 gigabits per second (Gbps), in China to feature uniform management and centralized dispatching.

"China TieTong's trust in Cisco's brand and technology is a result of a shared business strategy and long-time mutual support. Cisco has a long and successful working relationship with China TieTong and we look forward to working with them in the next stage of their network expansion to realize the value of broadband IP technology." says Hanh Tu, vice president of Cisco Systems China.

Although a relative newcomer among telecommunications networks, China TieTong's CRNET has been aggressively adopting advanced technology and equipment to rapidly develop its broadband business. Its centralized dispatching and accessing capabilities offers broadband users an innovative Internet experience. In December 2000, when it was first established, the company had only a few narrowband dial-up users and no broadband business. From 2001 to 2004, the company implemented marketing efforts to increase its broadband subscriber customer base. The company now serves more than 1.2 million broadband users.

Mr. Guo Xiaozhao, China TieTong spokesman, commented, "As an emerging telecom operator in China, our competitive edge derives from our cohesive marketing and technology strategies focused on differentiating our business and adopting advanced technology to serve our customers' needs. Cisco's IP NGN strategy supports the strategies we set to accomplish our business goals."

The cooperative relationship between China TieTong and Cisco dates back to the construction of the first and second phase of the CRNET backbone network as well as the local-area network of China TieTong, its voice-over-IP (VoIP) network, metropolitan-area network and billing network. The current network expansion aims to meet the requirements of customers whose virtual private networks (VPN) are based on the IP/MPLS technology. It will also allow more customers to enjoy the convenience of broadband services through multimedia applications.

For this latest expansion, CRNET will employ the Cisco 12416 Router and the Cisco 7304 Router, among other products, to significantly boost the processing capacity of the network. In addition, the MPLS VPN supported by Cisco routers allows CRNET to provide secure and efficient private network services, enabling fast and reliable communications between branches in different cities and supporting high-quality and highly reliable multimedia services. The comprehensive presales service, technical support and price advantage will create more business opportunities for China TieTong.