SBC and Cisco Create New Combinations For Customers; Dedicated Internet Access, High-Bandwidth Enterprise Networking Solutions Bundles Grow From Companies' Strategic Alliance

Business Wire, Nov 27, 2000

Business Editors/Technology Writers

SAN ANTONIO & SAN JOSE, Calif.--(BUSINESS WIRE)--Nov. 27, 2000

SBC Communications Inc. (NYSE:SBC), a leading provider of data transport, networking and e-business services, and Cisco Systems, Inc. (NASDAQ:CSCO), the worldwide leader in networking for the Internet, today announced the first in a planned series of bundled service and equipment packages offered at discount prices. The packages will combine SBC's network and integration services and Cisco equipment into end-to-end solutions customized to customers' needs, and will be offered at prices up to 30 percent lower than the cost of equipment and services purchased separately.

The first solution bundles to be offered by the companies are dedicated Internet access and high-bandwidth enterprise networking packages, which will be available at special pricing through year-end.

"Packaging SBC's range of network access, transport and integration services with Cisco's industry-leading networking capabilities enables us to provide customers with a single point of contact and accountability for complete network solutions," said Chuck Rudnick, vice president, SBC Business Marketing. "By bundling these services, we can offer customers significant price savings as well as convenience while meeting their data networking and Internet access needs from integration to support."

"Enterprise customers are looking for data networking solutions delivered by service providers who work closely with Cisco, and who can customize Cisco networking solutions to meet their Internet needs," said Kevin Kennedy, senior vice president of Cisco's service provider line of business. "SBC's Cisco-certified technicians and sales consultants provide assurance to customers that they will receive the support and expertise they require. With these two bundles, Cisco and SBC are offering not only cost-effective solutions, but a flexible, reliable and high-performance set of services for access, e-commerce and communications."

Dedicated Internet Access

The dedicated access solution package bundles SBC's point-to-point frame relay and/or ATM access with Cisco's industry-leading routers. The service is designed to meet low, medium and high bandwidth needs and is tailored to fit a range of e-business applications, such as joint intranets, enterprise resources planning and e-commerce capabilities. Through SBC's bandwidth-rich frame relay and ATM solutions, users will have access to hundreds of Points of Presence (POPs) through SBC's global network. The network is designed to meet the most stringent requirements for reliability, availability and security for businesses with mission-critical applications. SBC's Network Operations Centers (NOC) provide proactive network monitoring and fault resolution 24 hours a day, 7 days a week.

High-Bandwidth Networking

The high-bandwidth networking solution package provides business customers with secure e-business and communications interconnectivity between their remote offices, business partners, suppliers and customers. The package is designed for enterprise customers with three or more remote sites that handle multiple applications, such as LAN, WAN or remote access.

Packaging and Pricing

The bundled solutions are optimized to customers' individual needs, and can include 24/7 technical and maintenance assistance, Internet connectivity, network and firewall monitoring, and management and domain registration. SBC DataComm, a unit of SBC, provides installation, network monitoring and technical consulting. Cisco provides maintenance support through its SmartNet program. These bundled solutions will be available at a special price through December 31, 2000. They also will be available in 2001.

Strategic Alliance

SBC and Cisco announced a groundbreaking strategic alliance in April 2000 to lead market transitions to New World business systems and to deliver leading, interoperable solutions in voice, video and data services nationwide. Through the alliance, Cisco serves as SBC's preferred provider of data networking equipment for key broadband platforms, including DSL, ATM and frame relay. In addition, the alliance includes a series of joint research and product development activities to help both companies meet growing customer demand for emerging data and Internet Protocol (IP) services. The alliance was a natural progression for the two companies, more closely uniting SBC's broadband data capabilities and huge service area with Cisco's data networking, IP and carrier-grade networking infrastructure expertise.

SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its subsidiaries' trusted brands - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC and its affiliated companies provide local and long-distance phone service; wireless and paging services; e-business and data communications services; high-speed Internet access; messaging; cable and satellite television; security services; telecommunications equipment; and directory advertising and publishing. In the United States, the company currently has 61.3 million access lines and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. SBC has a 60 percent interest in Cingular Wireless, its joint venture with BellSouth, which serves more than 19 million wireless customers. Internationally, SBC has telecommunications investments in more than 20 countries and has annual revenues that rank it among the largest Fortune 500 companies.