Pirelli-Siemens: Strategic Alliance in Submarine TLC

The two companies will jointly develop new technologies for long distance telecommunication systems


Milan, 11 May 2001 - Pirelli Submarine Telecom Systems and Siemens Information and Communication Networks (ICN) today announced a partnership aimed at jointly developing Optical Transmission Equipment for long haul communications network applications. The product designs, which are on the cutting edge of communications technology, will be for the exclusive use by Pirelli for Submarine Repeatered applications and by Siemens for Terrestrial Transmission applications.

Thanks to the common technology platform on which the new products will be developed, Pirelli and Siemens will be able to provide complete and integrated optical networks employing terrestrial and submarine systems, and to customize best city-to-city solutions based on each customer's needs.

The Pirelli and Siemens partnership will establish a new key player in the integrated networks' market, the submarine portion of which is expected to reach (U.S.) $10 billion per year in the short term. The two companies' experience and technological leadership in the Submarine Systems and Terrestrial Transmission Networks will further enhance Pirelli and Siemens' competitive positions through the synergies the agreement will create.

The demand for integrated networks is increasing dramatically as telecom incumbents, capacity providers, carriers' carriers and new operators seek to operate seamless networks connecting their points of presence in major cities worldwide. There will be therefore a stronger request for integrated networks that will encompass a remarkable part of submarine systems: it is expected that up to 50% of future demand of telecommunication systems will be for these networks.



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