CoSine's Frame Relay-to-IPSec Service Opens Frame Relay Market To Next-Generation Carriers.

REDWOOD CITY, Calif.--(BUSINESS WIRE)--Nov. 15, 1999--

CoSine Weds the Security and Multi-transport Functionality of

Frame Relay with Cost-Effective, Value-Added IP Networking

CoSine Communications Inc., the leading provider of managed IP service delivery solutions for Next-Generation Carriers (NGCs), announced today that a new service--Frame Relay over IPSec (FRoIPSec)--is now available for its IP Service Delivery Platform.

The FRoIPSec service enables NGCs to enter the lucrative Frame Relay market by leveraging their IP infrastructure to deliver cost-effective, converged IP and Frame Relay services without deploying dedicated, "single-service" Frame Relay switches.

Services enabled by FRoIPSec include end-to-end multiprotocol Frame Relay networking, inexpensive international transport of Frame Relay traffic, and carrier-to-carrier Layer 2 Frame Relay gateway services. FRoIPSec is a software upgrade implemented in CoSine's IPSX 9000(TM) non-stop IP Service Processing Switch, the carrier-class switch component of the IP Service Delivery Platform, which is capable of supporting thousands of subscriber networks.

"Our new Frame Relay-over-IPSec functionality allows our carrier customers to expand both their market share and their service offerings," said CoSine President and CEO Dean Hamilton. "This announcement highlights the versatility of our IP Service Delivery Platform, which is far more than just a single-service edge device. It's a strategic multiservice delivery platform that will enable Next-Generation Carriers to continually deploy new high-value services in the future without a fork-lift upgrade."

"CoSine has taken the next step in the evolution of Frame Relay," said Johnson Agogbua, chief technical officer of Broadband Office. "CoSine's solution, combined with its new Frame Relay-over-IPSec service, offers emerging broadband Service Providers an exciting opportunity to cost-effectively enter the enormous Frame Relay services market while simultaneously deploying the infrastructure required to deliver next-generation, high-value IP services."

Capitalizing on a Growing Frame Relay Market

Frame Relay is the most successful network transport for business connectivity, due to its low cost compared to other leased-line services, inherent security and ability to handle a myriad of transport protocols. Market forecasts estimate that in 1999 the Frame Relay market will grow by 48 percent in the US and 46 percent worldwide. More than 42,000 US-based Frame Relay customers use about 640,000 User Network Interfaces (UNIs), and there are 57,000 Frame Relay customers worldwide. CoSine's IPSX 9000 now offers these users native Frame Relay connectivity over the lowest-cost-per-bit IP infrastructure.

"Delivering Frame Relay services on IPSec tunnels should be a winning approach for service providers with well-provisioned IP networks," said Michael Howard, principal analyst of Infonetics Research (San Jose, Calif.). "With Frame Relay over IPSec, service providers can leverage their existing IP networks and enter the large and growing Frame Relay market immediately, without the time and investment of adding Frame Relay equipment to their networks."

End-to-End Frame Relay Connectivity

NGCs can use CoSine's FRoIPSec services to offer an end-to-end Frame Relay service across their IP networks. The IPSX 9000 encrypts incoming Frame Relay traffic and uses secure tunneling to transport it transparently across the IP core. Because the traffic is encapsulated, the IPSX 9000 can transport all legacy protocols used by Frame Relay networks, such as SNA, AppleTalk, and Novell.

At the other end of the network, another IPSX 9000 decrypts the Frame Relay connection and transmits native Frame Relay to the destination site. FRoIPSec networking thus enables subscribers to retain their legacy multiprotocol Frame Relay networks while taking advantage of lower-cost IP networking at their own pace, as the needs of the business require. As a result, FRoIPSec gives enterprises a low-risk migration path to IP.

Low-Cost International Frame Relay Connectivity

FRoIPSec also represents a huge savings opportunity for international Frame Relay customers. Today a 128 kbps Frame Relay link between Europe and the US typically costs $3,800 a month. Because it takes advantage of the economical IP connectivity, FRoIPSec makes global connectivity more affordable. It also enables NGCs to offer a number of new service options.

NGCs with private IP peering relationships can use FRoIPSec to offer high-quality Frame Relay connection across international boundaries at dramatically lower costs. They can also use the CoSine solution to provide second-tier, best-effort Frame Relay service over public Internet connections, for subscribers that want even lower-cost international connectivity. Finally, NGCs can offer current Frame Relay carriers inexpensive FRoIPSec gateway services to national and international destinations they could not otherwise reach.

Fast Turn-Up, Long-Term Value

FRoIPSec offers a number of advantages over conventional Frame Relay networking. For example, IP eliminates provisioning overhead because, unlike connection-oriented Frame Relay, it does not require provisioning of dedicated resources at each switch in the network. With CoSine's network-based solution, carriers can establish end-to-end Frame Relay connectivity dynamically from a central location--no truck rolls required.

The CoSine solution also ensures the integrity of Frame Relay traffic through the use of IPSec Triple DES encryption, packet authentication, service management, and Public Key Infrastructure (PKI) services. In addition, NGCs can increase their revenues by offering Frame Relay customers value-added IP services such as network-based managed firewalls and secure IPSec dial-up services simply by activating the appropriate functionality of the IPSX 9000 Service Processing Switch.

Unified Management of IP and Frame Relay Services

CoSine's InVision(TM) Service Management System (SMS), the management component of the IP Service Delivery Platform, provides a single point of management and accounting for all FRoIPSec services. InVision SMS complies with Telecommunication Management Network (TMN) requirements and has an open Common Object Request Broker Architecture (CORBA) interface for seamless integration with existing network elements.

The browser-based InGage(TM) Customer Network Management (CNM) system, the third component of the CoSine platform, is designed to enable the enterprise IT manager to monitor performance of Frame Relay and IP subscribers alike, and electronically request service changes from the corporate site. The enterprise IT manager maintains control over network operations, eliminating the trust issues many subscribers have with outsourcing services to NGCs.

Availability

CoSine's Frame Relay-over-IPSec is a software upgrade available now for the CoSine IP Service Delivery Platform

About CoSine Communications

Founded in 1997 and based in Redwood City, Calif., CoSine Communications Inc. is the developer of a new class of IP service delivery platforms designed specifically to enable carrier-class service providers, including Competitive Local Exchange Carriers (CLECs) and interexchange carriers, to quickly and reliably turn up services to their wholesale and retail subscribers.

For more information about CoSine, please contact Suzanne Panoplos at [phone].