Cisco, Taldor to upgrade HOT network

HOT will now be able to install one modem for both telephony and Internet service.

Taldor Group (TASE: TALD) and Cisco Systems Inc. (Nasdaq: CSCO) will upgrade will upgrade and expand Hot Cable Systems Media Ltd.'s (TASE: HOT) CMTS (cable modem termination system). When the work is completed, HOT will be able to offer subscribers a single modem for both telephony and the Internet, something that the company's current network cannot do. The main purpose for the upgrade is to save costs and consolidate end equipment at subscribers' homes.

HOT recently concluded lengthy negotiations with Cisco related to HOT's broadband access center (BAC) tender, which enable the company to offer the consolidated modem to subscribers. Taldor beat Netcom Group in the tender to install the system.

During 2008, HOT will apparently solve the problem of having to install two modems for telephony and Internet services, and will be able to provide a single modem for both services, as the company planned to do when it originally launched its telephony service. The single modem solution was delayed after HOT was unable to reach an agreement with Cisco on the matter.

HOT will save money by eliminating the need to install two modems at subscribers, despite have to write off some equipment. HOT confirmed the report.

Published by Globes [online], Israel business news - - on February 4, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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