News Release

Mobile Operator Optimus Selects Cisco IP RAN Optimization

Optimus Portugal to Save Up to 50 Percent on 2G and 3G Backhaul Costs with Cisco's IP Radio Access Network (RAN) Optimization Solution
Apr 05, 2006

SAN JOSE, Calif., April 5, 2006 - Following the launch of Cisco's Internet Protocol (IP) Radio Access Network (RAN) optimization solution at 3GSM, Cisco Systems® today announced that mobile operator Optimus in Portugal, has now begun deployment of Cisco's IP RAN optimization solution in its network. Optimus is deploying Cisco IP RAN optimization to reduce backhaul network traffic by up to 50 percent, cut operating expenses and to provide new services, such as Universal Mobile Telecommunication Service (UMTS) and High-Speed Downlink Packet Access (HSDPA).

"One of the barriers to pervasive mobility has been tethered to developing an infrastructure that is capable of delivering high-speed broadband connectivity," said Jose Pinto Correia, CTO at Optimus, Portugal. "With the Cisco IP RAN optimization solution in place, Optimus can lower expenses, increase network capabilities, and most importantly, be a leader in providing our customers with new high-speed mobile services."

For Optimus, the Cisco IP RAN optimization solution serves four needs. First, Cisco IP RAN optimization reduces operating expenses for GSM and UMTS networks by using IP to optimize and aggregate mixed generation cellular traffic to lower backhaul costs. Second, its efficient transport supports 2G (GPRS, EDGE) and 3G (UMTS, HSDPA) voice and broadband data services without having to add multiple T1/E1 lines. Third, it supports higher-capacity and lower cost transport alternatives, such as Metro Ethernet, WiMAX, and DSL, which are ideally suited for bandwidth-demanding packet-based traffic such as HSDPA. Finally, it allows mobile operators to create new revenue streams by delivering innovative IP-based services, such as video broadcasting, Internet access and IP telephony, from the cell site making it an IP point of presence.

"At a minimum, a single HSDPA link requires 3.8Mbps, or two additional E1 lines. Multiply this to cover an entire network, and suddenly HSDPA can be a costly proposition," said Kim Wasserman, marketing product manager, Mobile Wireless Group, Cisco Systems. "Mobile operators, like Optimus, realize that IP RAN optimization provides a superior backhaul alternative. With it, operators can deploy new services without incurring unrecoverable costs."

Cisco IP RAN Optimization

Cisco IP RAN optimization solution optimizes GSM and UMTS traffic at the cell site using IP and helps to enable mobile operators to economically add new radio technologies, such as R99/R4 UMTS, and HSDPA, while delivering a common next-generation, efficient, multiservice IP backhaul. The solution includes a Cisco Mobile Wireless Edge Router (MWR) to optimize, aggregate and transparently transport mixed-generation voice, data and video over existing backhaul networks via IP and the Cisco Mobile Wireless Transport Manager (MWTM) to provide full monitoring. In this scenario, the Cisco IP RAN optimization solution typically results in a 50 percent efficiency gain, which means avoiding the expense of additional T1/E1 lines and accelerating deployments by making better use of the existing backhaul capacity.

Along with saving time and money today, the Cisco IP RAN optimization solution prepares operators for the future. For example, R99/R4 compliant UMTS and HSDPA traffic can be offloaded to a broadband or Ethernet-based network, thus taking advantage of the backhaul media independent properties of IP.

As 3GPP standards continue evolving toward IP for delivery of integrated voice, video and data services, the Cisco IP NGN vision and architecture offers significant business and technical benefits to mobile operators. As a component of Cisco's IP NGN, Cisco's IP RAN optimization solution demonstrates how Cisco networking technology leadership and IP innovation can deliver instant value in the RAN today, while creating long-term value for mobile operators. More information about Cisco's mobile service provider solutions is available at

About Optimus

From its beginning in 1998, Optimus has been steadily growing in the Portuguese market, having in view a sole objective: to be the leader in the Portuguese telecom market, providing its Customers with high-quality services and mobile phones that improve people's lives because they simplify, bring near and amuse. Optimus had already over 2.1 million customers.

Optimus is the only mobile communications company in the world to have won three consecutive GSM Awards, a distinction that reinforces its international recognition. In Portugal, the new operator has also won a number of important awards; its technological excellence has also been recognised by the Institute of Communications of Portugal by means of the results of a survey carried out by the sector regulator regarding the quality of mobile networks in Portugal.

By constantly launching new products and services in the Portuguese market - mobile portals, SMS news services, entertainment services, GPRS and 3G services - Optimus is also the leader in terms of the usage of new technologies.

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