Enviado: 12/11/2004 12:36China Chooses Cisco Systems for Network
11/12/2004 12:55:00 AM
SHANGHAI, China, Nov 12, 2004 (AP Online via COMTEX) -- Network equipment giant Cisco Systems Inc. said Friday it has been chosen by China's biggest telecoms company to build a next-generation backbone network.
The deal with China Telecommunications Corp. follows a pledge earlier this year by Beijing to step up purchases of U.S. telecoms equipment, a promise sought by the U.S. government as a way of redressing America's massive trade deficit with China.
In the past six months, state-owned China Telecom has signed deals worth more than $100 million with San Jose, Calif.-based Cisco.
The backbone network, known as the China Telecom Internet Protocol Next-Generation Network, will connect more than 200 cities. Cisco will also provide equipment for the backbone network serving provinces in central, eastern and southern China where the biggest share of Chinese companies and Internet traffic is concentrated, Cisco said in a statement.
The network will enable users in China to connect to overseas networks through virtual private network, or VPN, services.
Financial terms were not disclosed.
The next-generation network is part of a plan by China Telecom to become one of the world's largest providers of Internet protocol, or IP, services within a decade or two.
The project will link the backbone network with overseas connections of ChinaNet, the country's biggest public network, through Cisco platforms in the United States and Hong Kong, Cisco Systems said. Cisco Systems also was the main equipment provider for ChinaNet.
Beijing-based China Telecom, whose shares are traded in Hong Kong and New York, operates as a virtual telecommunications utility. It handles 99 percent of all fixed-line subscribers and ChinaNet handles about 80 percent of China's more than 80 million Internet users.
In January, Chinese telecoms operators agreed to buy $2.3 billion from overseas, mainly U.S. firms including Cisco Systems, Motorola Inc., Ericsson Inc., Intel Corp., Lucent Technologies Inc., Nortel Networks Ltd. and UTStarcom Inc.
U.S. officials have been promoting sales of high-tech equipment as one way of trimming the ballooning U.S. trade deficit with China, which hit $124 billion last year - the biggest such deficit with any country ever - and is expected to surge to $140 billion this year.
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On the Net:
Cisco Systems Inc.: http://www.cisco.com
China Telecommunications Corp.: http://www.chinatelecom.com.cn/english/
Copyright 2004 Associated Press, All rights reserved
11/12/2004 12:55:00 AM
SHANGHAI, China, Nov 12, 2004 (AP Online via COMTEX) -- Network equipment giant Cisco Systems Inc. said Friday it has been chosen by China's biggest telecoms company to build a next-generation backbone network.
The deal with China Telecommunications Corp. follows a pledge earlier this year by Beijing to step up purchases of U.S. telecoms equipment, a promise sought by the U.S. government as a way of redressing America's massive trade deficit with China.
In the past six months, state-owned China Telecom has signed deals worth more than $100 million with San Jose, Calif.-based Cisco.
The backbone network, known as the China Telecom Internet Protocol Next-Generation Network, will connect more than 200 cities. Cisco will also provide equipment for the backbone network serving provinces in central, eastern and southern China where the biggest share of Chinese companies and Internet traffic is concentrated, Cisco said in a statement.
The network will enable users in China to connect to overseas networks through virtual private network, or VPN, services.
Financial terms were not disclosed.
The next-generation network is part of a plan by China Telecom to become one of the world's largest providers of Internet protocol, or IP, services within a decade or two.
The project will link the backbone network with overseas connections of ChinaNet, the country's biggest public network, through Cisco platforms in the United States and Hong Kong, Cisco Systems said. Cisco Systems also was the main equipment provider for ChinaNet.
Beijing-based China Telecom, whose shares are traded in Hong Kong and New York, operates as a virtual telecommunications utility. It handles 99 percent of all fixed-line subscribers and ChinaNet handles about 80 percent of China's more than 80 million Internet users.
In January, Chinese telecoms operators agreed to buy $2.3 billion from overseas, mainly U.S. firms including Cisco Systems, Motorola Inc., Ericsson Inc., Intel Corp., Lucent Technologies Inc., Nortel Networks Ltd. and UTStarcom Inc.
U.S. officials have been promoting sales of high-tech equipment as one way of trimming the ballooning U.S. trade deficit with China, which hit $124 billion last year - the biggest such deficit with any country ever - and is expected to surge to $140 billion this year.
---
On the Net:
Cisco Systems Inc.: http://www.cisco.com
China Telecommunications Corp.: http://www.chinatelecom.com.cn/english/
Copyright 2004 Associated Press, All rights reserved
