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neuf telecom Extends Network to 3000 French Cities and Delivers TV over DSL as Part of New29 January 2005
Cisco Systems (Nasdaq:CSCO - News) announced today that neuf telecom, one of the leading French fixed telecommunications carriers in France, has reached a major milestone in delivering high-quality broadband Internet services throughout France with the deployment of a multi-service, multimedia network connecting 3000 cities in just 18 months. neuf telecom is using Cisco technology for the extension and expansion of its network to support the most ambitious local loop unbundling programme in Europe and to facilitate the delivery of new triple-play over ADSL services to neuf telecom's residential customers.
In November 2004, the company launched neuf TV, a digital-quality TV over DSL service offering over 70 channels and will shortly be launching its very-high-speed broadband ADSL2+ services. neuf telecom has increased its market share to become the third largest service provider in the residential market in France and the leading local loop unbundling provider in Europe with a total of 700,000 ADSL users from its retail and wholesale operations at the end of 2004.
neuf telecom's strategic focus on delivering high-speed broadband services and adding value through video services has driven the development of its network, extensively based on Cisco IP Next-Generation Network (IP NGN) technology. Cisco's 7600 Series routers, Catalyst 3000 Series switches and Cisco IOS network infrastructure software are used to provide the Quality of Service (QoS)-enabled multi-service network, supporting intelligent video distribution using dynamic multicast, allowing better optimisation of network infrastructure and fast TV channel surfing time. neuf telecom's multi-service network also supports IP services for neuf telecom's wholesale customers including Club Internet (T-Online), Tele 2 and La Poste.
"We set out in 2003 to create a fully-owned network that will put us in a strong competitive situation in the retail and wholesale markets and our decision to work closely with Cisco has helped us to achieve that," said Francois Paulus, general manager, Network Division for neuf telecom. "The Cisco-based network gives us the ability to introduce our unique 'a la carte' services, where customers can select from a clearly-priced menu of services. By simplifying the provisioning of TV services, we keep our Opex to a minimum and maintain our competitiveness in the consumer market. We can also offer greater value to our wholesale customers by giving them the flexibility and performance in the network to deliver their own IP voice and video services."
neuf telecom reported sales in 2003 of EUR 992 million. For the first half of 2004, neuf telecom increased its sales to EUR 564 million, up 24% compared to the same period in 2003, EBITDA was up 33% to EUR 60 million and earnings of EUR 15 million.
"neuf telecom has scaled its residential subscriber base by an impressive factor with Cisco's Metro DSL aggregation solution, from 100,000 ADSL subscribers at the end of 2003 to 400,000 residential subscribers for ADSL a la carte services at the end of 2004," said Jean-Christophe Dessange, Broadband Business Development Manager, Cisco Systems. "neuf has demonstrated that TV over DSL is very much a commercial reality for alternative carriers. They are building a strong and profitable business on a multimedia infrastructure using Cisco Next Generation Network solutions that are capable of taking video over IP services to the next scale, supporting further expansion and new service innovation. With a strategy based on IP for all services, simplicity of management and Ethernet technology for optimum cost-effectiveness, neuf is showing the way to other alternative carriers throughout Europe."
About neuf telecom
The Neuf Telecom Group (formerly LDCOM) is one of the leading French fixed telecommunications operators. neuf telecom relies on its own nationwide network infrastructure, which enables it to offer innovative products and services at competitive cost. The Group is active in all market segments and as of end of 2004 served 200 Internet operator and professional customers, 200 value-added hosting customers via Jet Multimedia, 30,000 enterprise customers -- from small and medium enterprises to public-sector customers and major accounts -- and 1.6 million individual customers, including over 400,000 ADSL customers. With the support of its shareholders, prominent among them the Louis Dreyfus and Suez groups and national operators Telecom Italia and Belgacom, the group is free of debt and posted sales of EUR 1 billion in 2003. It continues to invest in its network, with the aim of becoming a major presence in the high-speed arena in 2004.
About Cisco Systems
Cisco Systems, Inc. (Nasdaq:CSCO - News), the worldwide leader in networking for the Internet, this year celebrates 20 years of commitment to technology innovation, industry leadership and corporate social responsibility. Information on Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com. Cisco equipment in Europe is supplied by Cisco Systems International BV, a wholly owned subsidiary of Cisco Systems, Inc.
Cisco, Cisco Systems, the Cisco Systems logo, and Cisco IOS are registered trademarks of Cisco Systems, Inc. in the U.S. and certain other countries. All other trademarks mentioned in this document are the property of their respective owners.
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Contact:
Cisco Systems
JoAnne Hughes, +44 (0)20 8824 0314 (Press)
joahughe@cisco.com
David Taylor, +44 (0)20 8824 8459 (Analysts)
dwtaylor@cisco.com
David Cook, +44 (0)20 8824 9712 (Investor Relations)
davicook@cisco.com
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Source: Cisco Systems, Inc.
Source: Business Wire via Yahoo
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