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To: freeus who wrote (33221)6/25/1999 1:35:00 PM
From: Ruffian  Respond to of 152472
 
Cisco-China,

Cisco Is Planning More IP Networks With
Chinese Firms

By Elaine Chan at Bloomberg News

25 June 1999

Cisco Systems Inc., the world's leading maker of Internet
equipment, said it is working with more Chinese organizations
and companies to set up Internet protocol (IP) networks.

The company announced this week it signed a memorandum
with the Guangdong Post and Telecommunications
Administration to sell $200 million worth of equipment for a
data communications network, including Internet access
equipment and routers, over the next five years.

"We are working with other companies and organizations to
have similar cooperation," said Jia-Bin Duh, president of Cisco
Systems China.

IP networks are used to transmit data between computers. The
technology also allows voice transmission over the Internet,
making long-distance and international telephone calls
possible at very low cost.

Duh said Cisco launched an IP project last week with China
Unicom, the country's second-largest telecom firm, but
declined to elaborate further. Internet-based telephony is now
banned in China, but the government said in March it expects
to allow commercial Internet phone service as early as
September, in an effort to make domestic telecom providers
more competitive.

IP-based telephone calls cost one-tenth as much as
conventional calls, according to Cisco.

China's telecommunications companies are eager to provide IP
services to their customers, said Richard Freemantle, Cisco's
vice-president for Asia-Pacific.

"Phone companies don't want to be marginalized as just a
broadband provider," he said.

Cisco's China sales rose more than 50% last year, and growth
this year should be "at least that," said Freemantle, who gave
no further details.

Copyright 1999, Bloomberg L.P. All Rights Reserved.