Cisco Systems Announces Shaanxi Telecom Deal in China, Expanding Broadband Internet Access and VoIP Capabilities

Strategic Insights -

Cisco Systems, Inc., a leading networking company, announced that Shaanxi Telecom, one of China's fastest-growing internet service providers, has chosen solutions from Cisco Systems to build the country's largest broadband internet access network. This deal, valued at an estimated $3.5 million, includes the implementation of Cisco's powerful multiprotocol label switching (MPLS) technology, which enables ISPs to optimize network traffic for maximum throughput, minimum delay, and reduced cost. Shaanxi Telecom aims to support large numbers of users and offer new, value-added services such as video on demand, voice over IP, and virtual private networking.

Key Takeaways:

  • Shaanxi Telecom, a Chinese internet service provider, has chosen Cisco Systems to build the country's largest broadband internet access network, utilizing Cisco's MPLS technology.
  • The deal totals an estimated $3.5 million and includes Cisco SC2200 series signalling controllers, Cisco 12008 GSRs, and Catalyst 7500 series routers.
  • Shaanxi Telecom aims to offer new value-added services such as video on demand, voice over IP, and virtual private networking, generating lucrative revenue streams.
  • The Cisco solution enables Shaanxi Telecom to reduce switching interface costs by up to 50% and trunk costs by 30% through the use of centralised functions for adding SS7 to its existing circuit-switched network.
  • Shaanxi Telecom's Deputy Director General and Chief Engineer, Gong Li, stated that the Cisco solution deployed rapidly, cutting their time to market in half and offering rapid payback as they enter new markets.
  • The Cisco solution is built on a standards-based approach, providing scalability and cost-effectiveness, with a uniquely flexible software architecture that allows for rapid development and certification of national variants of SS7.

Statistics:

  • The deal totals an estimated $3.5 million.
  • Shaanxi Telecom aims to support large numbers of users, but no specific number is mentioned.
  • The Cisco SC2200 series signalling controllers can save up to 50% on switching interface costs, and the Cisco 12008 GSR can provide a 40Gbps switch fabric and support up to 7 OC-48c/STM-16c interfaces.
  • The Cisco Catalyst 7500 series can support up to 28Mpps switching capacity.

Sources:

  • Cisco Systems, Inc. (NASDAQ:CSCO)
  • Shaanxi Telecom
  • Gong Li, Deputy Director General and Chief Engineer of Shaanxi Telephone Bureau
  • Shaanxi Telephone Bureau
  • Data Communications Magazine (testers choice award winner)
  • Cisco IOS software
  • Sun Solaris platforms
  • Cisco AS5800 dial access server
  • Cisco Catalyst 7500 series
  • Cisco 12000 GSR series