Cisco Systems Powers Chunghwa Telecom's Latest Managed Services for SMEs; Revenue-Generating Managed Services to Bring Enhanced Communications and Increased Productivity to Taiwan's SMEs.

TAIPEI, Taiwan -- Cisco Systems(C) today announced that its state-of-the-art Internet Protocol (IP) technologies and architecture have been selected to power the latest managed services offered by Taiwan's largest information and telecom service provider, Chunghwa Telecom. Targeted to help small and medium-sized enterprises (SMEs) in Taiwan enhance communications and increase productivity, this collaboration represents a key milestone since the signing of the memorandum of understanding (MOU) between the two companies in late 2004. The MOU aims to expand the delivery and adoption of IP-based managed network services in Taiwan.

By deploying Cisco's robust IP technologies, Chunghwa Telecom has equipped itself with an efficient, optimized, scalable network for the rollout of revenue-generating managed services including IP-VPN and managed network security. Chunghwa Telecom's customers will also be able to focus on their core competency and rapidly benefit from new cutting-edge technologies. According to IDC Asia Pacific, the managed services industry is an area of opportunity for telco service providers. It is forecast to grow from US$5.7 billion last year to US$6.5 billion this year in the Asia Pacific region.

"In today's highly competitive market, it is important for us to become an all-round service provider, especially after our recent privatization effort. To innovate our business model and grow revenue continuously, we have aligned with a strategic partner to provide differentiated services. By cooperating with Cisco, CHT expects to create a win-win-win solution to strengthen SME customers' global competitiveness and migrate CHT from a traditional telecommunications carrier to an ICT services provider. Our managed services for SMEs demonstrate once again that we are a responsive service provider with the greatest in-depth understanding of customer needs. Cisco's powerful and reliable IP solutions certainly sharpen our edge and allow us to respond even faster to the market's changing requirements," said Mr. Tan Hochen, chairman of Chunghwa Telecom.

Cisco's IP solutions for Chunghwa Telecom's managed services include models of the Integrated Services Routers such the Cisco 871 and 1841. The Cisco 1800 Series is the next evolution of the award-winning Cisco 1700 Series modular access routers. Optimized for SME networks, the Cisco 1800/800 Series fixed-configuration routers are designed for secure broadband, Metro Ethernet and wireless connectivity. They help businesses reduce costs by enabling deployment of a single device to provide multiple services, acting as an integrated router with redundant link and providing firewall, LAN switch, VPN, IPS, wireless technology and quality of service (QoS) functions typically performed by separate devices. Chunghwa Telecom also adopts the Cisco Capital's financial solution to provide a product leasing program for Taiwan's SME customers. As a result, SMEs can now benefit from premium managed services typically enjoyed by large enterprises.

"We are very pleased to support Chunghwa Telecom's unique managed services that will bring SMEs unmatched benefits in productivity and communications. The current collaboration between Cisco and Chunghwa Telecom -- two leaders in their respective spaces -- underscores Cisco's global commitment to help service providers evolve their networks and businesses," remarked Mr. Chris Khang, vice president, Asia Operations, Cisco Systems. "Our proven IP technologies work to accelerate customer demand for services. With Cisco's IP network infrastructure, Chunghwa Telecom is able to meet the increasingly sophisticated needs of its existing and future customers in Taiwan and overseas while proactively extending its footprint globally."

Cisco not only advocates a crucial vision for the IP NGN (IP Next Generation Network), but also provides leading-edge architecture and IP solutions to support service provider customers to develop a full range of products and services over the longer term.

The Cisco IP NGN architecture focuses on three key convergence areas -- network convergence, service convergence and application convergence.

These three areas are important to service providers because of their impact on key issues such as revenue growth, capital expenditure, operating efficiencies, greater competitive differentiation, customer loyalty and market diversification through the rollout of various services.

Cisco's strategy is to innovate and to provide the technology, solutions and expertise service providers need as they transform their networks and move along the IP NGN journey.

As the convergence of data, voice, and video services onto a single network becomes a major trend, Cisco is helping Chunghwa Telecom ride this triple-play wave. By embracing an IP infrastructure powered by Cisco solutions and expertise, Chunghwa Telecom expects to simplify its network, improve cost-efficiency and enhance service delivery to customers.

"We are delighted to have such an opportunity to support Chunghwa Telecom in their journey of privatization, globalization and embracing an IP NGN that allows the successful rollout of managed service and other innovative services in the future. Cisco is consistently in the best position to work with service providers in developing and providing the revenue-generating solutions most needed by customers," said Mr. Khang.

About Chunghwa Telecom Co., Ltd.

Chunghwa Telecom (TAIEX 2412)(NYSE:CHT) is the leading telecom service provider in Taiwan. Chunghwa Telecom provides fixed line, mobile and Internet and data services to residential and business customers in Taiwan.

About Cisco Systems

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