Letter of Intent Between Telenor and Cisco Systems: All-out effort to build new infrastructure
Fornebu
6 minute read
Telenor has signed a letter of intent on a comprehensive collaboration with Cisco Systems, the world's leading supplier of electronic systems for the Internet. The aim is to build a test version of an integrated infrastructure based on the Internet Protocol (IP) for telephony, data and multimedia services from land-line and mobile connections. Based on the test results, Telenor can eventually replace the variety of networks currently in use with this Full Service Network (FSN).
If such a network is realised, Telenor will be investing billions of kroner annually for a long period to come. In return, Norway will have the world's most state-of-the-art and cost-effective communication infrastructure.
"Together with Cisco Systems, Telenor plans to study the feasibility of a national all-out effort to introduce the infrastructure of the future. With a single, overall technology in different networks and a dramatic increase in transmission capacity for most people, we'll be laying the cornerstone of a communication revolution we can only see the bare outlines of today," says Ole Petter Håkonsen, head of technology development at Telenor.
If the test network meets expectations, future plans will entail major replacements in the core of Telenor's network and thus provide far better exploitation of the current access network. Today's infrastructure consists of a copper telephone wire running from each household to a local connection point. Part of the plan is to increase the number of these local connection points, thereby shortening the distance to each household and thus boosting the transmission speed over those wires to several megabits per second. That's at least 30 times faster than ISDN. You can thereby transmit, e.g., motion pictures over the same lines currently used for telephony or Internet.
A similar process will take place with the GMS network for mobile telephony. Today, the GMS base stations catch signals from your cellular phone. Gradually, GSM will be supplemented, and eventually replaced, by UMTS (Universal Mobile Telephone System). This, too, will mean significantly faster transmission to the mobile unit (telephone, PC, etc.). The capacity will be up to 2 megabits per second, enough to transfer motion pictures, among other things.
For Telenor, such a transition from several separate networks to a single, integrated IP network will mean far simpler administration and better resource utilization. Today's specialists in conventional telephony, GSMN and data networks will be able to focus on fewer technologies and networks. Administratively, billing customers will be far simpler because all use of different communication units will be recorded in the same network. Customers will thus receive a single invoice for all services used.
Work to establish a test network for FSN in Norway will commence immediately. The aim is to open for limited commercial trial operation by autumn.
"With FSN on a land-line basis, Telenor will provide Norway with the world's most modern infrastructure for voice, data and video communication. Telenor will be an important reference for us in the transition phase to IP-based communication in other parts of the world," says Theo Wegbrans, Vice President Northern Region in Cisco Systems.
About Telenor:
Telenor is a leading telecom, IT and media company in Norway. From a position as national telecom operator, the Telenor group of companies has expanded its sphere of operations to include a wide range of products and services based on, and associated with, electronic communication. Today, Telenor is the only company in Norway offering a full range of services within telephony and data communication, mobile telephony, Internet, IT and satellite communication. This forms the basis for a strong commitment to defined global markets.
In 1998 Telenor had NOK 28.4 billion in revenues and an operating profit of NOK 3.847 billion.
You'll find further information on Telenor at https://www.telenor.com
About Cisco:
Cisco Systems is the world's leading supplier of network solutions for the Internet and is one of the largest industry successes in US history. The company sells its products in approx. 115 countries and had USD 8.46 billion in sales in fiscal year 1998.
You'll find more information on Cisco at Cisco Connection Online: http://www.cisco.com
"Together with Cisco Systems, Telenor plans to study the feasibility of a national all-out effort to introduce the infrastructure of the future. With a single, overall technology in different networks and a dramatic increase in transmission capacity for most people, we'll be laying the cornerstone of a communication revolution we can only see the bare outlines of today," says Ole Petter Håkonsen, head of technology development at Telenor.
If the test network meets expectations, future plans will entail major replacements in the core of Telenor's network and thus provide far better exploitation of the current access network. Today's infrastructure consists of a copper telephone wire running from each household to a local connection point. Part of the plan is to increase the number of these local connection points, thereby shortening the distance to each household and thus boosting the transmission speed over those wires to several megabits per second. That's at least 30 times faster than ISDN. You can thereby transmit, e.g., motion pictures over the same lines currently used for telephony or Internet.
A similar process will take place with the GMS network for mobile telephony. Today, the GMS base stations catch signals from your cellular phone. Gradually, GSM will be supplemented, and eventually replaced, by UMTS (Universal Mobile Telephone System). This, too, will mean significantly faster transmission to the mobile unit (telephone, PC, etc.). The capacity will be up to 2 megabits per second, enough to transfer motion pictures, among other things.
For Telenor, such a transition from several separate networks to a single, integrated IP network will mean far simpler administration and better resource utilization. Today's specialists in conventional telephony, GSMN and data networks will be able to focus on fewer technologies and networks. Administratively, billing customers will be far simpler because all use of different communication units will be recorded in the same network. Customers will thus receive a single invoice for all services used.
Work to establish a test network for FSN in Norway will commence immediately. The aim is to open for limited commercial trial operation by autumn.
"With FSN on a land-line basis, Telenor will provide Norway with the world's most modern infrastructure for voice, data and video communication. Telenor will be an important reference for us in the transition phase to IP-based communication in other parts of the world," says Theo Wegbrans, Vice President Northern Region in Cisco Systems.
About Telenor:
Telenor is a leading telecom, IT and media company in Norway. From a position as national telecom operator, the Telenor group of companies has expanded its sphere of operations to include a wide range of products and services based on, and associated with, electronic communication. Today, Telenor is the only company in Norway offering a full range of services within telephony and data communication, mobile telephony, Internet, IT and satellite communication. This forms the basis for a strong commitment to defined global markets.
In 1998 Telenor had NOK 28.4 billion in revenues and an operating profit of NOK 3.847 billion.
You'll find further information on Telenor at https://www.telenor.com
About Cisco:
Cisco Systems is the world's leading supplier of network solutions for the Internet and is one of the largest industry successes in US history. The company sells its products in approx. 115 countries and had USD 8.46 billion in sales in fiscal year 1998.
You'll find more information on Cisco at Cisco Connection Online: http://www.cisco.com