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.