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ENRON COMMUNICATIONS, INC. ANNOUNCES NEXT PHASE OF NETWORK DEPLOYMENT; FORMS ALLIANCE WITH CISCO SYSTEMS AND CIENA CORPORATION
FOR IMMEDIATE RELEASE: November 3, 1998
PORTLAND, Ore. -- Enron Communications, Inc., a wholly owned subsidiary of Enron Corp. (NYSE: ENE), announced today that it is building the nation's first all-Internet Protocol (IP) backbone. Enron Communications' Pure IPsm network not only will address the growing demand for IP bandwidth but also will significantly reduce capital costs and operating expenditures compared to traditional communication systems. To implement this new architecture, Enron Communications has formed strategic alliances with Cisco Systems and Ciena Corporation, leading providers of telecommunications technology.
"This development is a natural progression in our telecommunications strategy," said Joe Hirko, CEO and president of Enron Communications. "We're completing construction on the Western Build network and are preparing to light the fibers early next year. Now we've selected the network architecture that enables service providers to offer new applications, such as video to the desktop and collaborative services. Our Pure IPsm network better addresses the data-oriented needs of customers than a network optimized for traditional voice communications services."
The Enron Communications Pure IPsm network will utilize Cisco Systems' high-speed 12000 Gigabit Switch Routers (GSR) and Ciena's MultiWave Sentry 4000 Dense Wave Division Multiplexing (DWDM), which create the high speed optical circuits. The Cisco routers enable Enron Communications to run IP directly over DWDM channels, bypassing unnecessary network layers that slow traffic and add expense to traditional networks.
"The significance of Internet Protocol networks, such as the one now being built by Enron Communications, cannot be overstated," said Graeme Fraser, vice president of Cisco's Optical Internetworking Business Unit. "The telecommunications infrastructure of the future will be built with networks that send IP over the optical layer. Enron's expanding relationship with Cisco and its adaptation of Cisco's optical internetworking strategy enable it to deliver the next generation of network applications now."
"The growth in high speed data applications requires network planners to design networks that can scale rapidly and economically," said Steve Chaddick, CIENA's senior vice president of strategy and corporate development. "Enron's network architecture represents the best new approach to building multi-service networks commercially available today."
Enron Communications is building long-haul fiber-optic networks on strategic routes throughout the United States in an effort to create a data-centric national fiber optic backbone. Enron Communications will focus on the wholesale bandwidth needs of the telecommunications service providers. Enron Corp. is one of the world's leading integrated natural gas and electricity companies. The company, which owns approximately $28 billion in assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."
Click here to download this press release in Microsoft Word format.
For additional information please contact:
Tracy Smith
Enron Communications
(503) 464-7837
Everett Tackett
Cisco Systems
(408) 527-8607
Denny Bilter
Ciena Corporation
(800) 921-1144
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