Internet Telephony: Telenor and Cisco Systems to Build New IP-Based Full Service Network in Norway. Agreement Driven by Increasing Market Opportunities for Convergence of Voice and Data on Single Networks - Company Business and Marketing

Cambridge Telcom Report, June 21, 1999

In a further display of Europe's commitment to the New World of Internet-based telecommunications, Telenor and Cisco Systems Thursday announced they are to build a new national network infrastructure based entirely on IP (Internet Protocol) technology.

Under the terms of the agreement, Telenor, Norway's national telecommunications provider, and Cisco Systems, the worldwide leader in networking for the Internet, initially plan to trial a Full Service Network (FSN) network capable of carrying voice, data and video through a single connection. Telenor will consider implementing a single network based on the results from the test period, which is to begin immediately.

Telecommunications operators like Telenor are switching to single IP-based networks as a cost-saving measure, and as a way to deal with increased data loads more effectively -- benefiting both businesses and consumers. Single networks are easier to manage, requiring less resources, and administrative actions are simplified, with all customer activities registered within the same network.

"Together with Cisco Systems we will conduct a national effort in order to establish an infrastructure for the future. With one common network and a dramatic general enhancement of transmission capacity, we are creating the stepping stones for a communications revolution we today only can imagine the silhouette of," said Ole-Petter Hakonsen, vice president, Telenor.

In current networks, a direct copper link connects every household to a local access point. As an integrated part of the new infrastructure, the numbers of these access points on a national basis are to be enhanced from 3,300 to 9,200. The nearest access point will be situated a lot closer to the users. As a result, the speed can be boosted to several megabits per second -- a factor of 30 times faster than ISDN -- allowing the network to support voice, data and video.

A similar development will be seen in today's GSM cellphone network. The present GSM base-stations detect cellphone signals and transmit these to the desired destination. The new network will allow these base stations to be replaced by IP-based systems. GSM will thereafter be migrated to a UMTS (Universal Mobile Telephone System), resulting in a considerably increased transmission capacity -- 2 megabits -- in servicing mobile units such as telephones and PCs.

"With a national single IP-based network, Telenor will have one of the world's most modern systems for voice, data and video-based communications. Telenor will be an important reference partner for us in the transformation to IP-based communication in other parts of the world," said Paul Mountford, Cisco Systems' vice president of Service Provider Operations, EMEA.

Telenor is the national telecommunication provider in Norway. Information is available at http://www.telenor.no

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