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.