Cisco Announces Continued Global Momentum in Broadband Cable IP Next-G

Cisco Announces Continued Global Momentum in Broadband Cable IP Next-Generation Networks

    Business Editors/High-Tech Editors

    SAN JOSE, Calif.--(BUSINESS WIRE)--March 28, 2005--

New Customers, Expanded Services, Technology Trials Demonstrate Increasing Adoption of Cisco IP Technology by Cable Companies
    Building on its commitment to deliver innovative Internet Protocol (IP) Next Generation Networks (NGN) to service providers worldwide, Cisco Systems(R), Inc. (Nasdaq:CSCO) today announced strong momentum in helping broadband cable operators build and transform their networks to profitably deliver a growing portfolio of differentiated consumer and commercial services.
    Cable companies are leading an industry movement by offering a bundle of services, including local and long distance voice communications, broadcast and video on demand entertainment, high-speed Internet access and wireless/mobility services, to consumers and businesses. To expand their service offerings, drive revenues and improve capital and operational expense efficiencies, cable operators are actively migrating to Cisco-based converged IP network infrastructures.
    The Cisco IP-NGN architecture enables cable operators to create additional consumer value and an enhanced competitive position by increasing innovation, enabling feature integration, and accelerating time to market of its service offerings. In addition, with a Cisco IP NGN, cable operators can rapidly scale their offerings and deliver a compelling end user experience. The standards-based Cisco IP-NGN architecture meets the capacity needs of video-on-demand and availability requirements of new communications services, while delivering significant fiber, capital and operational efficiencies.
    In recent weeks, Cisco has issued several important announcements of new customer wins, technology trials and expanded service offerings based on its cable IP NGN solutions. Customers are taking advantage of the Cisco IP NGN architecture based on three layers of convergence which are well established in service provider networks today:

-- Network convergence: allows operators to eliminate multiple layers or parallel networks and offer multiple services over a single network, helping to improve providers' fiber, capital and operational efficiencies.

-- Service convergence: Establishes network intelligence and permits service continuity and common features across multiple forms of network access. Such service continuity can be a major differentiator in the market and can attract new customers and reduce customer churn.

-- Application convergence: Supports the integration of applications based on an open systems architecture, allowing cable operators to combine many different services over the same connection for delivery to a variety of end devices.

    Cisco is making advancements in each of each of these areas, specifically within multiservice digital cable networks.

    Network Convergence

    Broadband cable operators are deploying, managing and maintaining a single multiservice digital cable network based on IP technologies. Cisco is providing industry-leading, innovative technology to drive network convergence and help customers significantly reduce infrastructure costs. Recent examples of Cisco's efforts are:

-- Comcast selected Cisco 7600 Series Routers and optical Ethernet technologies to help build its IP NGN designed to support and accelerate the delivery of high-speed Internet, standard and high definition digital broadcast, on-demand video programming and voice services.

"Cisco's flexible networking solutions are helping us to optimize our capital and operational expenditures, and are providing the foundation for our future integrated services strategy," said Ray Celona, Comcast's senior vice president of National IP Engineering Operations.

-- Cisco Systems(R) and Himawari Network, Inc. recently announced they have begun trials of Wideband Protocol for DOCSIS(TM), a new technology able to deliver up to 1 gigabit per second (Gbps) broadband speeds to consumers and businesses over existing hybrid fiber coax (HFC) networks.

-- ONO, a leading cable operator based in Madrid, Spain, recently announced that it is delivering broadcast-quality television content using a next-generation digital video transport network based on Cisco technology. ONO has selected Cisco to deploy a Service Control solution, which will allow ONO to offer personalized broadband services and differentiate against the competition. ONO offers telephony, television and Internet services to customers -- in 22 regions across Spain. (For more on this announcement visit http://newsroom.cisco.com/dlls/2005/prod_032105.html).

    Service Convergence

    Cable operators are migrating toward or delivering "triple play on the move" which combines voice, video, data and mobility services. To achieve true service convergence, these operators must deliver common features across multiple services and provision and manage a service over a range of access mediums. The following activities and announcements from Cisco underscore the company's move to accelerate service convergence and integrate further intelligence within the network:

-- Charter Communications has deployed Cisco's cable network infrastructure to handle the rapid growth of its broadband customer base. Charter required a platform that would enable a high level of reliability, while minimizing capital expenditures and operating expense.

"As a Cisco Powered Network partner, Charter Business has based its multi-services strategy on a Cisco IP NGN that provides a service-rich, cost-effective network infrastructure to help us grow our commercial service offerings and meet our overall business objectives," said Steve Santamaria, vice president of Charter Business. "While Charter Business has seen strong demand for its services, particularly data services, where we saw 46 percent revenue growth last year, we continue to focus on penetrating the market further with differentiated IP-based data, voice and video services for business customers. Our relationship with Cisco as a technology supplier as well as a selling partner will help us expand our service offerings and grow our revenues, while keeping network operational costs low."

-- Comcast has selected Cisco as a technology provider for the rollout of its Comcast Digital Voice service. Comcast will be using the Cisco BTS 10200 Softswitch platform in selected markets and also plans to take advantage of Cisco's Session Initiation Protocol (SIP) capabilities to enable advanced real-time communications features.

-- Cogeco Cable recently announced that Cisco has been selected as a strategic supplier to provide IP network technology in support of delivery of its residential digital phone service, which will launch later in 2005. Cogeco's residential voice service will be based on network technology provided by Cisco Systems(R) including IP softswitches and voice gateways. For more on this announcement visit http://www.cogeco.ca/files/pdf/press_releases_en/PR_CCA_ENG_022105.pdf

"There is strong alignment between Cisco's and Cogeco's vision to fully exploit the power of Broadband Cable IP Next Generation Networks to provide a range of advanced telecommunications services to our customers," said Francois Audet, director of telecommunications at Cogeco Cable. "Because the Cisco platform supports two major standards, SIP and PacketCable, we are extremely well positioned to leverage this exceptional capability by offering a full suite of integrated, value-added services to targeted markets in the near future."

    Application Convergence

    Home networking has become more than sharing an Internet connection among PCs. IP-based applications such as voice communications, entertainment and security services are fueling the growth for home networking products while increasing the value and appeal for service providers. Linksys, a division of Cisco Systems, gives cable operators an opportunity to extend its reach into the consumer's Connected Home. The following are ways Cisco and Linksys are enabling operators around the globe to deliver innovative new service offerings that extend the broadband network into the home:

-- Comcast deploys Linksys residential gateways operating in CableHome(R) mode, which enables the cable service provider to offer its subscribers' networked services through a Comcast-managed home networking device. As a result, customers can simply focus on enjoying the experience. Comcast can update the gateway with new services and features or perform remote troubleshooting to give customers a more robust and worry-free way to access and share their broadband experience.

-- Linksys provides a portfolio of hardware solutions to support the delivery of IP services around the home or office.

-- Linksys is an active member of CableHome(R), a CableLabs-managed initiative which develops the interface specifications necessary to extend high-quality cable-based services to network devices within the home.

    "Cisco is committed to helping cable companies succeed by accelerating their transition to IP NGNs capable of delivering services that consumers and businesses demand, and helping cable operators accelerate service delivery and time to revenue while reducing operational costs," said Jeff Spagnola, vice president, service provider marketing segment, at Cisco Systems. "To help operators realize their IP NGN visions, Cisco continues to invest in cable technology and system development, system testing, and implementation services."

    About Cisco Systems

    Cisco Systems, Inc. (Nasdaq:CSCO), the worldwide leader in networking for the Internet, celebrates 20 years of commitment to technology innovation, industry leadership, and corporate social responsibility. Information on Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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CONTACT: Cisco Systems, Inc. Lang Tibbils, 408-853-9013 (Press) ltibbils@cisco.com Ken Bond, 408-526-6001 (Investor Relations) kbond@cisco.com Amal Nichols, 408-526-6493 (Industry Analyst) amnichol@cisco.com

KEYWORD: CALIFORNIA INDUSTRY KEYWORD: HARDWARE SOFTWARE NETWORKING INTERNET E-COMMERCE PRODUCT SOURCE: Cisco Systems, Inc.

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