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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Stephen B. Temple who wrote (2278)1/8/1999 8:11:00 AM
From: Stephen B. Temple  Read Replies (1) of 3178
 
Cisco Systems and General Instrument to work with AT&T on High Speed Internet Access Network; Cisco and GI to develop and trial Integrated IP Broadband Networking Solutions

HORSHAM, Penn.1999--Cisco
Systems, Inc. (Nasdaq:CSCO) and General
Instrument Corporation (NYSE: GIC)
announced today that they intend to work
with AT&T on a non-exclusive basis to
develop and trial a seamless, end-to-end
Internet Protocol (IP) solution that would
allow AT&T to offer data, voice and video
services over the hybrid fiber-coax network
now being deployed by AT&T and TCI.

Although specific agreements have not been
reached, the Cisco/GI IP telephony solution
under development would allow AT&T to offer
its customers the ability to simultaneously
watch television, send and receive faxes,
surf the World Wide Web and talk on the
telephone.

"Cisco's collaboration with AT&T and GI will
result in a New World network that will
fundamentally change the way
communications services are delivered to the
consumer market," said John Chambers,
president and CEO of Cisco Systems, Inc. "By
combining broadband Internet, phone and
video services over a single cable line, we
are taking a major step towards implementing
future integrated data, voice and video
telecommunications on a mass market scale."

"The HFC IP telephony system being
developed by Cisco and GI will establish the
benchmark for integrated broadband service
platforms, leading the way for the industry.
We are extremely pleased to have the
opportunity to partner with Cisco and AT&T
on this groundbreaking project," said Edward
Breen, chairman and chief executive officer
of General Instrument.

The proposed AT&T broadband network
would combine advanced networking and
Voice-over-IP (VoIP) technologies to enable
cost-effective delivery of consumer services
while streamlining operational demands. Using
broadband packet technologies, data, voice
and video services that traditionally required
construction of multiple parallel legacy
networks would be delivered using one
integrated high-speed infrastructure.

The IP backbone, as proposed by Cisco and
GI, would contain the Cisco 12000 Gigabit
Switch Router (GSR), a multi-gigabit,
carrier-class, IP backbone router, and the
Universal Broadband Router (uBR), a
cost-effective, scalable interface between
subscriber cable modems and the backbone
data network. The packet telephony
gateways would be based on the Cisco
AS5X00, voice-over-IP gateway servers.

Cisco, with cooperation from Cisco partners,
proposes to deliver management, call
processing and provisioning/activation
solutions used in the AT&T deployment. This
combination of leading Internet technologies
from Cisco and best-of-breed partners would
enable a suite of advanced services that will
be more efficient to manage, have greater
application flexibility, and lower costs for the
end user.

The primary gateway to the next-generation
network would be GI's DCT-5000+ advanced
consumer digital in-home terminal. The
DCT-5000+ capability to serve as an
interactive gateway to this advanced
consumer network allows video
entertainment, IP-based telephone and
high-speed data services to be delivered
simultaneously to the home with superior
all-digital quality.

In the proposed architecture, GI's suite of
industry-standard Customer Premise
Equipment (CPE) solutions would also be
integrated into AT&T's network. GI's CPE
solutions include stand-alone Broadband
Telephony Interface (BTI) terminals and
integrated BTI solutions for the
SURFboard(R) high-speed cable modem and
the DCT-5000+ advanced set-top terminal.
By integrating the set-top terminal, cable
modem and BTI into one system, this
platform offers a more cost-effective
alternative to traditional circuit-switched
telephony systems.

As development efforts move forward, the
three companies currently plan to conduct a
market trial expected to begin in late 1999,
with an objective of moving toward
commercial availability next year.

About General Instrument

General Instrument is a leading worldwide
provider of integrated and interactive
broadband access solutions, teaming with its
business partners to lead the convergence of
the Internet, telecommunications, and video
entertainment industries. Visit General
Instrument at our Web Site -
gi.com

About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the
worldwide leader in networking for the
Internet. News and information are available
at cisco.com.
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