Munich/Milan - 20 Dec 2001 0:00 UTC

Pirelli-Siemens: fiber optic backbone in Sumatra

Munich/Milan, 20 December 2001 – The Indonesian
telecommunications company PT Telkom has awarded a contract to
Pirelli and Siemens IC Networks for the turnkey construction of a
high-performance fiber-optic backbone network, both terrestrial and
submarine, in Sumatra. The network will span the vast Indonesian
island of Sumatra from east to west and become the basis for
telecommunication development in this resource-rich region. The
order is worth more than 70 million euro and will put the
Pirelli/Siemens consortium in a strong position for future
telecommunications projects in the region.

The high-performance fiber-optic backbone in Indonesia covers a
length of more than 2000 kilometers and comprises a 345 km DWDM
transmission submarine link from the eastern coast of Sumatra to
the resort and industrial island of Batam, situated 20 km from
Singapore. The link also foresees a possible extension to the State
of Singapore.

Siemens IC Networks (ICN) will deliver the transmission
technology, supply and install from its TransXpress family the DWDM
(Dense Wavelength Division Multiplexing) and SDH (Synchronous
Digital Hierarchy) equipment. Pirelli will deliver the 12
fiber-optic terrestrial cable systems. The submarine link to the
island of Batam will be supplied on a turnkey basis by Pirelli
Submarine Telecom Systems (PSTS). This link will span more than 345
km, with a transmission capacity of 40 Gbit/s on two fiber pairs,
and will be equipped with Siemens TransXpress WLS equipment which
is used for ultra-long unrepeatered submarine links, using
state-of-the-art DWDM and integrated remote pumping technology.

The contract with PT Telkom is structured as a ” Partnership
Agreement” and will put the Siemens/Pirelli consortium in a good
position for future telecommunications projects in the region.
These will include accesses, as well as further submarine links to
connect more islands in the area to ultimately constitute a fiber
optic ring connecting Sumatra, Java and Kalimantan, the Indonesian
Borneo.

This is the first project of the Pirelli/Siemens partnership,
which was established in May this year with the aim of jointly
developing optical submarine transmission equipment for
communications network applications.

Siemens Information and Communication Networks (IC
Networks) is a leading provider of integrated voice and data
networks for enterprises, carriers, and service providers. Its
comprehensive portfolio comprises, in particular, IP-based
convergence solutions, a full range of products for broadband
access, optical transport networks, and integration, services, and
applications business. The Siemens Group thus provides complete
solutions from a single source for the infrastructure of the Next
Generation Network. In fiscal 2001 (year-end 30 September) IC
Networks employed 51,000 people worldwide and posted sales of 12.9
billion euro.

Further information about ICN is available at: www.siemens.com/networks

Pirelli is a global manufacturer of Tyres, Telecom and
Energy Cables and Systems. With 41,000 employees, 86 plants and
total sales of Euro 7.477 billion, Pirelli ranks among the world
leaders. The company is increasingly focusing its R& D and
manufacturing resources and competencies on leading-edge
technologies, as witnessed by the recent establishment of the
advanced Pirelli Labs.