Press Releases

Budapest, May 22, 2007 11:00

The expansion of services based on Internet technology and broadband facilities has become an integral part of Magyar Telekom's business strategy. As part of the upgrading process of its IP backbone network, the company deploys two Cisco CRS-1 terabit routers that allow a significant increase in network reliability and the satisfaction of future capacity demands.

Innovative Cisco devices mark a turning point in the technological evolution of the company. Magyar Telekom is the first to use this unique router and transport technology in Hungary. Introducing the Cisco IP NGN (Cisco IP Next Generation Network) architecture opens up new opportunities to provide services beyond traditional Internet technology, to upgrade the telecommunications infrastructure as well as to develop and deploy services based on individual application and customer management.

The IP NGN structure provides an open platform to differentiate services: integrated media services in addition to video and IPTV (e.g. video with sound or with Internet data) and value-added services (e.g. VoIP, interactive games and access to digital content such as a photo library and films on demand) will also become available.

In addition, corporate users have a growing need for virtual private networks offering higher availability (IP VPN), which can only be built using devices like the CRS-1 that can be upgraded and serviced in the course of operation, without service outage.

With this major upgrade, Magyar Telekom uses a proactive approach to prepare its network for increasing customer demand for broadband Internet services and to accommodate the network for future increases of bandwidth, an important consideration for facilitating widespread use of the IPTV service introduced last year. As a result of the latest technological investments, customers too will be able to experience the significantly increased network capacity and higher network availability.

The rapid roll-out of broadband accesses is one of the primary strategic objectives of Magyar Telekom. This is an objective where the business interests of Magyar Telekom Group and Hungary's national interests fortunately coincide.

The number of broadband Internet service subscribers is continuously increasing all over the country. In 2006, there was a significant increase in the number of broadband subscribers of Magyar Telekom. Quick access to broadband Internet and its nationwide use is a top priority in 2007 as well. At the end of March 2007 over 628,000 broadband Internet connections were registered with Magyar Telekom. Commercial IPTV service was launched in 2006 and ADSL without phone service was introduced in March 2007. Klip, a service already available, offers free phone calls to other Klip users over the Internet without any per minute charge, monthly fee or call set-up fee. Customers pay only the regular Internet fee. If Klip users call a non-Klip user or a client in another network, only a low per minute charge applies without any call set-up or monthly fee. And, following the practice of the previous years, Magyar Telekom increased the bandwidth of its ADSL service for no extra charge to the customers.

"Massive broadband connections and widespread Internet use help Magyar Telekom to go beyond infocommunication services and strengthen its position in the market of audio-visual services," stressed Christopher Mattheisen, Chairman - Chief Executive Officer of Magyar Telekom. "There are even today several modern, innovative solutions on the market which were first made available in Hungary by Magyar Telekom. Just to name a few concrete achievements from the past months: in addition to increasing the number of broadband connections, we are strengthening our position in fixed and mobile multimedia and content services including some very exciting products like iWiW, IPTV (T-Home TV), G3 mobile phones supporting video telephony and television programs and mobile Internet (web'n'walk). Our T-Home TV product offers a revolutionary new digital experience in television broadcasting. We have always watched media closely as today Internet is one of the most important communications channels in the world. Now we take it one step further with television broadcasting."

"Hungary has taken the lead in the region in terms of broadband Internet access use with over 1 million broadband Internet connections registered. So it is not by chance that such a milestone technological development is first implemented in Hungary" stated Kaan Terzioglu, managing director, Central and Eastern Europe for Cisco Systems. "I believe that this cooperation with Magyar Telekom can set an example for the neighboring countries of the region where similar investments may be realized." he added.

CRS-1
Cisco CRS-1 (Carrier Routing System) was registered in the Guinness Book of World Records in 2004 as the Internet router with the largest capacity ever. Providing up to 92 terabit bandwidth by connecting multiple CRS-1 devices, the CRS-1 routing system opens up a world of unlimited possibilities for users if complemented with appropriate network and data transfer solutions. Just to illustrate the transfer rate of the device, the entire collection of the Library of Congress of the United States can be downloaded in only 4.6 seconds or up to 1 billion users can play the same on-line game.

About the CRS-1 technology
CRS-1 routers have innovative system architectures based on the Cisco Silicon Packet processor with a capacity to facilitate the satisfaction of future performance demands. All major components operate with redundancy within the system. The devices run with Cisco's new, completely modular IOS-XR software that serves as the cornerstone of high system availability. Port speeds supported by the terarouter range from 155 Mbit/s OC3 interface to the 40 Gbit/s interface mentioned above. One of the unique features of the solution is the support for tunable DWDM ports on 10GE and 40 Gbit/s POS cards. Magyar Telekom now can test and use the 40 Gbit/s interface first applied in the CRS-1 device. Another interesting fact is that the 40 Gbit/s interface has a tunable, DWDM based version representing a completely unparalleled technical solution in the industry.