Cisco unveils big deal for new Telecom IP network

Cisco yesterday announced its biggest sale yet in New Zealand - a new national IP-based communications network for Telecom.

Cisco yesterday announced its biggest sale yet in New Zealand - a new national IP-based communications network for Telecom.

Cisco is to build an IP (Internet Protocol) virtual private network based on a nationwide deployment of its wide-area switches.

The network will use MPLS (Multi Protocol Label Switching), an IETF standard that aims to bring the quality of service features of ATM and frame relay to the IP environment - opening the way for a wider range of applications, including voice and so-called econets, or economic networks.

Hemingway says Cisco went early for MPLS and is ahead of other vendors with the technology. Other carriers to have picked up MPLS so are Swisscom, Concert, AT&T - and the Telecom-controlled Australian carrier AAPT.

Cisco says the joint purchase of the Cisco solution will provide Telecom and AAPT with the first fully-integrated trans-Tasman network. Telecom's esolutions virtual venture with Microsoft and EDS will also be offering the Cisco network as a solution to customers.

The company's country manager Tim Hemingway says the multiservice network will let Telecom reduce capital and operational costs by eliminating the need to build multiple overlay networks. The MPLS solution can "IP-enable" ATM, frame relay, DSL or wireless mobile networks.

Barry Davey, Telecom's general manager for IP and data says IP has become the preferred service delivery mechanism for for business because it enables enterprises to offer flexible and secure access to their network by customers and suppliers.

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