Indonesian Mobile Operator Provides Future for Subscribers

Bangkok--May 30--Frontier Digest Highly Scalable Network Based On Cisco IP Allows Excelcom To Provide New Services To Growing Subscriber Base The latest addition to Indonesia's telecom sector is using an all-IP strategy in its quest to become one of Indonesia's most successful mobile operators. To support its aggressive plans for growth, PT Excelcomindo Pratama (Excelcom) is building out a telecommunications network that stays true to its vision "To Be The Premium Telecommunication Provider." In rolling out its wireless network, Excelcom turned to Cisco to provide the IP foundation that carries voice and third generation (3G) data services from the provisioning stage, across the network and onto the wireless network. And with Excelcom's burgeoning subscriber base, Cisco equipment will be scaling to carry these services to a growing number of users. "We have experienced incredible growth in our subscriber base since we started operations in 1995. With a user base projected to grow from 1.8 million today to well over 5 million in three years, we were looking for a solution that enables us to expand our network capacity as demand grows for our new data services. IP is clearly the way to go and Cisco had a solution that met our requirements," said Werner Noz, director, network operation of Excelcom. Noz goes on to explain that 98% of Excelcom's subscribers are pre-paid, but with its previous infrastructure it was difficult to offer a compelling array of value-added services to these customers. The challenge therefore was to build a network that allows Excelcom the financial security of pre-paid customers, with the ability to offer them the latest in mobile services. Also, with strong market pressure to cut the price of telecom services, Excelcom also needed a network that could be easily provisioned and maintained. The solution was the Cisco IP Transfer Point (ITP), which acts as the gateway between Excelcom's Signaling System 7 (SS7) wireless network and its IP network. By connecting to an IP network, Excelcom is laying the foundation to provide a compelling array of value-added services to its growing subscriber base. Both highly reliable and cost-effective, IP networks also have the advantage of being able to handle the increased network demands placed by intensive use of 3G data and video mobile services. IP networks are better than traditional time-division multiplexing (TDM) networks, which have difficulty handling anything more complex than wide-spread short message services (SMS) messaging. TDM networks are also difficult to manage and provision, and are therefore inadequate to support a business plan that calls for a rapid increase in high-end data services. "The message Excelcom is sending to our users with this investment in our IP-based SS7 network is that we're here for the long haul. We now have the ability to bring in and support new users who are looking for reliable and innovative mobile data services," Noz said. "Like elsewhere in Asia, Indonesians are looking for a compelling line of available data services. We're responding to customer demand and providing them what they want." In making this commitment to its customers, both present and future, Excelcom did not have to immediately replace any of the investments it has made in the past, namely in any legacy TDM networks. The Cisco ITP is able to carry traffic on the SS7 mobile network and transfer it both to an existing TDM or IP network, whichever is the appropriate network in that instance. In addition, the ITP is able to offload some of the traffic from the TDM network onto the IP network, thereby reducing the strain on the legacy network. "Excelcom has demonstrated great vision in integrating IP with its mobile network and joins an elite group of mobile operators around the world. While other mobile operators on traditional TDM-based SS7 networks are struggling to provide their users with even the most basic mobile data services, Excelcom is competitively positioned to provide the most highly sophisticated services right now," said Irfan Setiaputra, managing director, Indonesia, Cisco Systems, said. "With our expertise in building resilient IP networks, Cisco is in a good position to help operators such as Excelcom build the next generation of IP-enabled mobile networks." Because the Cisco ITP contain the complete feature set found in legacy signaling transfer points (STPs), they effectively replace STPs in a TDM network. This is an advantage because STP solutions are very complicated and expensive to maintain. Furthermore, the Cisco ITP solution gives Excelcom the performance they need at the price they demand. ITP enables Excelcom to roll out new services to its expanding customer base in a cost-effective manner. Looking to the future, Setiaputra said that mobile operators around the world will follow Excelcom's lead and look to new IP solutions. "With the proliferation of applications such as caller ID, wireless roaming and SMS, new SS7 technologies will need to provide more cost-effective options to offload outband signaling to more efficient and lower-cost IP networks. High-end services, built on a scalable infrastructure that allows the operators to rapidly add more users, is one way operators will compete in markets where the demand for all things wireless continues to boom. Mobile operators worldwide are combining traditional and new wireless technologies as they migrate toward all-IP, data-based networks," he said. About Cisco Systems Cisco Systems, Inc.(NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at http://www.cisco.com. Cisco equipment in Europe is supplied by Cisco Systems International BV, a wholly owned subsidiary of Cisco Systems, Inc. All trademarks that appears on this document are a registered trademark under the trademark license Press Contacts: Supoet Srinutapong Atchara Khuchayapoom Cisco Systems (Thailand) Ltd. Frontier Digest Limited Tel. 0-2263-7066 Tel. 0-2714-0996 Email: [email protected] [email protected] End. -PM-

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