Cisco Launches IP RAN Optimization for Mobile Operators; Mobile Operators Use IP to Save Up to 50 Percent on 2G and 3G Backhaul Costs While Delivering New Revenue-Generating IP Services

Business Wire, Feb 14, 2006

SAN JOSE, Calif. -- In an ever-competitive environment among mobile operators to contain expenses while increasing customer services, Cisco Systems(R) (NASDAQ:CSCO) today announced the launch of its IP Radio Access Network (RAN) optimization solution -- a comprehensive RAN vendor-neutral solution set that uses IP to increase network efficiency, reduce costs and speed to market new and innovative mobile services.

By applying Cisco's IP-based RAN optimization solutions, operators using GSM and UMTS networks are able to reduce up to 50 percent of their backhaul traffic(1). This results in lower backhaul costs and increased capacity to deploy new services.

Because of its inherent flexibility, the Cisco IP RAN optimization solution serves four common mobile operator needs. First, Cisco IP RAN optimization reduces operating expenses for GSM and UMTS networks by using IP to optimize and aggregate mixed generation cellular traffic to lower backhaul costs. Second, its efficient transport supports 2G (GPRS, EDGE) and 3G (UMTS, HSDPA) voice and broadband data services without having to add multiple T1/E1 lines. Third, it supports higher-capacity and lower cost transport alternatives, such as Metro Ethernet, WiMAX, and DSL, which are ideally suited for bandwidth-demanding packet-based traffic such as HSDPA. Finally, it allows mobile operators to create new revenue streams by delivering innovative IP-based services, such as video broadcasting and IP telephony, from the cell site making it an IP point of presence.

"A revolution is taking place right now in mobility," said Larry Lang, vice president and general manager, Mobile Wireless Group, Cisco Systems. "Customers today demand a variety of services that will allow them to live, work and play in their fast-paced, mobile world. These new services drive new packet traffic, not only across new air interfaces, but also in the transport to each cell site. Cisco IP RAN optimization creates new possibilities for operators to deliver on this vision and at the same time saves money while providing it."

Cisco IP RAN Optimization

Cisco IP RAN optimization solution optimizes GSM and UMTS traffic at the cell site using IP and helps to enable end-to-end IP services. A key component to this is the Cisco MWR 1941-DC-A mobile wireless access router. In a typical deployment, Cisco MWR 1941 mobile wireless access routers optimize and aggregate GSM and UMTS traffic at the cell site. In doing so, they reduce operator dependency on leased T1/E1 lines. The routers support traditional narrowband (T1/E1) and high-speed IP broadband (xDSL, WiMax, Metro Ethernet) RAN backhaul networks for greater scalability and network flexibility. Having an IP router at the cell site also gives operators the ability to deploy new services, such as IP cameras for surveillance, IP telephony, WiFi and WiMAX access, Internet connectivity and location-based services to reach new customers.

The Cisco ONS 15454 Multiservice Provisioning Platform (MSPP) provides scalable aggregation and optimization services for backhaul traffic at the base station controller/radio network controller (BSC/RNC) site. The ONS platform can connect multiple cell site mobile wireless routers to a BSC/RNC, and in doing so can enable the mobile network operator to aggregate hundreds of Abis and Iub connections on a single carrier-class platform. The Cisco ONS 15454 MSPP supports a wide range of TDM and IP features, eliminating the need for dedicated TDM cross connect and ATM platforms at the BSC/RNC site.

IP RAN Optimization -- Supporting Mobility Through the Cisco Internet Protocol Next-Generation Network (IP NGN)

As 3GPP standards continue evolving toward IP for delivery of integrated voice, video and data services, the Cisco IP NGN vision and architecture offers significant business and technical benefits to mobile operators. As a component of Cisco's IP NGN, Cisco's IP RAN optimization solution demonstrates how Cisco networking technology leadership and IP innovation can deliver instant value in the RAN today, while creating long-term value for mobile operators.

More information about Cisco's mobile service provider solutions is available at www.cisco.com/go/mobile.> About Cisco Systems

Cisco Systems, Inc. (NASDAQ:CSCO) is the worldwide leader in networking for the Internet. Information about Cisco can be found at http://www.cisco.com. For ongoing news, go to http://newsroom.cisco.com.

(1) Traffic reduction estimates are based on laboratory conditions and standards. Actual results will depend on configuration and environmental conditions.

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