FreeLight™ Fibre Cables for New High-speed Network in China

Milan, 2 March 2000 - The Chinese Telecom operator China NetCom Corporation Ltd. (CNC) selected Pirelli Cables and Systems as the supplier of the biggest part of the 3,600kms optical fiber cable required to build the first nationwide high-speed IP network. In addition to some 100,000kms of traditional fibre, the contract awarded to Pirelli also includes the supply of approximately 50,000kms of the new FreeLight Non-Zero Dispersion fibre, specially designed by Pirelli for high-capacity transmission systems. This new fibre will be used by the Chinese affiliate Pirelli Telecom Cables Wuxi for the production of the fiber optic cables to be supplied to CNC.

The CNC contract is highly relevant to the Pirelli Group: while representing a remarkable commercial breakthrough in the Chinese market with a state-of-the-art product as the FreeLight fibre, it also demonstrates the impressive potential of the Chinese local telecommunications sector.

China NetCom Corporation Ltd (CNC) was established with the support of the State Council and the Ministry of Information Industry, and has been created to build a new-generation telecommunications infrastructure with a full range of innovative services. Also thanks to the technological contribution represented by Pirelli's FreeLight fibre, CNC is constructing the world's first nationwide all-fiber optic IP based high-speed backbone network: CNCnet.

CNCnet will provide a wide range of telecommunications services, including voice, image, fax and data communications, and will also provide a platform for the research and development of cutting edge technologies and new Internet applications in China. The need for optical cables for a further expansion of CNCnet is estimated to reach 10,000kms within the next two years.