John Chambers Unveils Telecommunications Vision in China; "China to be a major player in the Internet
Economy," says Cisco CEO
BusinessWire, Monday, September 21, 1998 at 18:26
BEIJING, China--(BUSINESS WIRE)--Sept. 21, 1998--John T.
Chambers, president and CEO of Cisco Systems, today unveiled Cisco's
telecommunications vision for the future and outlined several
opportunities for China to participate as a major player in the
emerging Internet Economy.
Chambers explained that the world is moving to an Internet-based
economy that will deliver numerous competitive advantages for
businesses towards the year 2000 and beyond.
According to Chambers, the Internet will move a productivity tool
to an essential method of conducting business to gain a competitive
edge.
As the Internet takes hold in the telecommunications arena, he
says, it will enable telecommunications companies to deliver a mix of
New World data, voice and video services, helping all companies run
their business more effectively, sell their products and services
on-line, and communicate better to customers, vendors and employees.
In addition, the adoption of New World technologies will help
level the playing field for all nations and enable China to compete on
a global scale.
"Voice is no longer the single driver to conduct business today,"
said Chambers. "Data will soon exceed voice traffic over many
international circuits, and the Internet has emerged as the the new
driving force. Cisco sees new competition in this arena from Old World
companies, but we are uniquely positioned because of our role as a
worldwide leader in networking for the Internet."
Independent reports have estimated that 80 percent of all
Internet traffic already goes through Cisco equipment.
According to Cisco, New World telecommunications services are
delivered by new network infrastructure that is Internet-based rather
than circuit-switched. These new IP-based, multiservice networks can
carry data, voice, and video on a single network, reducing costs and
extending reach of businesses to worldwide markets.
Multiservice networks not only provide a means to carry voice
traffic far more cost-effectively than traditional circuit-switched
networks, but more importantly, they pave the way for a variety of
lucrative value-added services.
Such services are becoming increasingly important to
telecommunication service providers, especially those operating in
markets where aggressive competitors are looking to capture the
profitable long-distance, leased line and value-added services.
These services -- which range from managed services to Virtual
Private Networks (VPNs) to total system integration for corporate
customers -- offer a valuable means for service providers to move up
the value-chain.
Adoption is expected to be rapid in China. For example, Henan
Province Post & Telecommunications Administration is installing a
multimedia infrastructure that will provide data, voice and video
services to over 100,000 users in the province. The Henan Broadband
Service Data Network forms the core of the Henan Multimedia Service
Network (known as the "169 Network" in China).
"As an Internet Economy company driving New World services, Cisco
is well positioned to lead this change," Chambers said. "Most experts
now share Cisco's view that the integration of data, voice, and video
traffic will be based on Internet-based networks, not circuit-switched
voice networks.
"I also believe that there will be a sweeping conversion of voice
traffic onto data networks. To accelerate this process, Cisco has
launched several initiatives to promote technology exchange between
China and the United States, and help educate China's workforce which
is essential to her telecommunications development."
Cisco Systems, as the worldwide leader for networking on the
Internet, has enjoyed strong growth in China over the past four years.
Cisco established a Beijing representative office in 1994 and has
since opened branch offices in Shanghai, Guangzhou and Chengdu, aimed
at providing the most advanced, networking products to Chinese
customers.
In addition, Cisco has contributed to the acceleration of data,
voice and video integration in China by supplying advanced IP
infrastructure equipment to China Telecom for the construction of
ChinaNet, China's Internet backbone, the China Multimedia Network, and
ATM+IP switching equipment to major telecommunications users such as
China Financial Network, Henan PTA and Guangxi PTA.
Chambers visits China frequently; his last visit to Beijing was
in June this year. During the past three-and-a-half years as president
and CEO, Chambers has grown the company from US$1.2 billion in annual
revenues to its current run-rate of more than US$8.5 billion.
One of the 20 highest-valued companies in the world, Cisco has a
market capitalization of more than US$100 billion. Cisco also has the
world's largest electronic commerce site in the world; with a run-rate
of US$5 billion, more than 64 percent of all Cisco products are
purchased over the Internet.
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.
Note to Editors: Cisco, Cisco IOS, Cisco Systems and the Cisco
Systems logo are registered trademarks of Cisco Systems, Inc. in the
U.S. and other countries. All other trademarks mentioned in this
document are the property of their respective owners.
CONTACT: Cisco Systems, Inc.
Doug Wills, 408/527-9475 (PR)
dwills@cisco.com
or
Mary Thurber, 408/526-8893 (IR)
mthurber@cisco.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
INTERACTIVE/MULTIMEDIA/INTERNET
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