Can someone explain me what is this:
In its statement Telefonica said areas where it might work with Cisco included network infrastructure,
online services, broadband access and differentiated Internet/intranet services.
Telefonica Enlists Cisco For Internet Push
By William Schomberg
MADRID, Spain (Reuters) - Ambitious Spanish telecommunications operator Telefonica furthered its
Internet expansion strategy Thursday when it teamed with Cisco Systems Inc. (Nasdaq:CSCO -
news), a leading maker of Internet network equipment, to develop telecommunications services and
products.
The deal would allow Telefonica -- the biggest telecommunications company in the Spanish-speaking world -- to provide
new online services to businesses and boost its efficiency, Telefonica said in a statement.
Cisco, based in San Jose, Calif., stood to optimize its telecommunications equipment, Telefonica said in a statement.
Telefonica Chairman Juan Villalonga and Cisco President John Chambers signed the deal Thursday, the statement said.
Telefonica is the latest of several telecommunications companies to join forces with Cisco, one of the leaders in a race to
deliver voice and video data over the Internet.
This month German operator Mobilcom announced a plan with Cisco to offer online phone services.
Singapore Telecommunications and QWest Communications Inc., the fourth-biggest U.S. long-distance operator, also allied
with Cisco recently. In its statement Telefonica said areas where it might work with Cisco included network infrastructure,
online services, broadband access and differentiated Internet/intranet services.
''In particular, special attention will be given to solutions for the new generation of networks based on ATM and IP,
modernization of access to the network using new XDSL technologies and provision of new services on IP,'' it added.
Asynchronous Transfer Mode (ATM) and X Digital Subscriber Line (XDSL) are types of technology used for data
transmission. IP stands for Internet Protocol, a basic technology that allows Web surfers to hook up to the Internet.
Telefonica, the dominant telecommunications operator in Spain and in several countries in Latin America, has focused
increasingly on developing its Internet services.
Last month it announced a deal with British media group Pearson Plc with a view to improving content for its online products
as well as its television interests.
Also in June, Telefonica hired Lucent Technologies Inc. (NYSE:LU - news), a fierce rival of Cisco, to design and install an
Internet-based communications in a roughly $200 million deal.
Telefonica recently bought ZAZ, a Brazilian service provider and has begun to offer customers free access to the Internet. |
