VimpelCom Expands and Upgrades its National Network

MOSCOW & HANOVER, Md.--(BUSINESS WIRE)--Ciena^® Corporation (NASDAQ: CIEN), the network specialist, today announced a strategic agreement with the Russian telecoms operator VimpelCom, for the upgrade and expansion of its national optical network. Ciena’s 6500 Packet-Optical Platform, powered by WaveLogic™ coherent optical processors, will be deployed in network links extending over approximately 10,700 km. This includes the upgrade of the Moscow - Urals and Urals - Siberia connections and the southern part of the Western Russia network (the ‘Big European Ring’), as well as the construction of a 100G network in the far eastern part of the country.

Key Facts:

• The network linking Moscow and the Urals, based on Ciena’s coherent technology, has been extended with additional 40 Gbit/s channels - without causing disruption to existing services. The upgrade of the existing Urals to Siberia network will provide data transmission speeds of 40 Gbit/s over a single wavelength as well as the expansion of the network onto the far eastern region, which will be connected by a network of over 3,000 km in length that provides 100 Gbit/s over each wavelength. The upgraded and extended network will be commercially available by the end of the year.
• The highly agile, scalable and cost-effective core network will support the roll-out of VimpelCom’s LTE network in Russia and will be able to meet the increasing demand of its client base for mobile broadband services as well as the increasing volume of network traffic. The deployment of Ciena’s highly reliable and scalable coherent technology enables VimpelCom to easily upgrade its existing networks to 40G, 100G and beyond as requirements evolve over time - while maintaining continuity of traffic transmission, keeping operating costs down and protecting long-term investments.
• Ciena’s 40G/100G coherent technology is also being deployed in the upgrade of the southern part of the ‘European ring’ network, covering Rostov and Krasnodar. This is in addition to an upgrade of the northern section of the same network, connecting the cities of Moscow, Kazan, Ufa, Samara and Saratov, which was completed last year.
• A key aspect of Ciena’s OPⁿ architecture, the 6500 Packet-Optical Platform gives potential for exponential scale and provides better performance than traditional 10G systems over a wide range of fiber types. The 6500 can operate over existing fiber and amplifier chains, reduces the need for regeneration, and enables scalability of up to 8.8 Terabits per second on a single fiber pair.

Executive Comments:

• “The roll-out of LTE services and increase in broadband usage, coupled with the prospect of new data-heavy enterprise services, dictate that VimpelCom’s core network must be ready. In collaboration with Ciena we developed an optimized architecture for our national network that will provide VimpelCom with operational effectiveness, both in terms of ease of implementation and scalability. Moreover, the network upgrade will cause no disruption to existing services and ensure VimpelCom continues to meet customers’ expectations.”
  - Alexey Sapunov, Transport Network Director at OJCS VimpelCom
• “The exponential explosion in bandwidth demand has been associated with a revolution in network requirements generated by new applications such as cloud computing as well as the rise of real-time traffic. Working together, we have designed network architecture with the intelligence and agility needed to meet ever evolving demands while monetizing existing investments. Ciena’s coherent technology will enable VimpelCom to remain competitive in Russia and beyond, and allow new business opportunities to flourish.”
  - Sergei Fishkin, Regional Managing Director, Russia, CIS and the Baltics at Ciena

Technology Leadership and Product Background:

• Ciena's WaveLogic coherent optical processors enable operators to maximize the reach, capacity and flexibility of networks by enabling seamless upgrades to 40G/100G and beyond. Using innovative coherent receiver, high-speed analog to digital, and custom digital signal processing technology that integrates intelligence into the equipment, Ciena’s technology offers ease-of-deployment, cost efficiency and network investment protection.
• Ciena is the pioneer and market leader of coherent optical technology with more than 16,000 coherent 40G/100G line interfaces shipped to over 100 customer deployments over land and undersea across the globe.

Supporting Ciena Resources:

• Infonetics Survey: Global Service Providers Optical Equipment Leaders
• Coherent Application Note: Coherent Optical Processing for High-Capacity Networks
• Data Sheet: 6500 Packet-Optical Platform
• Video: What is Coherent Optical Networking?
• Video: Ciena Intelligent Infrastructure Solutions

About Ciena

Ciena is the network specialist. We collaborate with customers worldwide to unlock the strategic potential of their networks and fundamentally change the way they perform and compete. With focused innovation, Ciena brings together the reliability and capacity of optical networking with the flexibility and economics of Ethernet, unified by services and software that delivers the industry’s leading network automation. We routinely post recent news, financial results and other important announcements and information about Ciena on our website. For more information, visit www.ciena.com.

About VimpelCom

VimpelCom is one of the world’s largest integrated telecommunications services operators providing voice and data services through a range of traditional and broadband mobile and fixed technologies in Russia, Italy, Ukraine, Kazakhstan, Uzbekistan, Tajikistan, Armenia, Georgia, Kyrgyzstan, Cambodia, Laos, Algeria, Bangladesh, Pakistan, Burundi, Zimbabwe, Central African Republic and Canada. VimpelCom’s operations around the globe cover territory with a total population of approximately 782 million people. VimpelCom provides services under the "Beeline", "Kyivstar", "djuice", “Wind”, "Infostrada" “Mobilink”, “Leo”, “banglalink”, “Telecel”, and “Djezzy” brands. As of June 30, 2012 VimpelCom had 208 million mobile subscribers on a combined basis. VimpelCom is traded on the New York Stock Exchange under the symbol (VIP). For more information visit: http://www.vimpelcom.com.

Note to Ciena Investors

Forward-looking statements. This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof; and Ciena's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Report on Form 10-Q, which Ciena filed with the Securities and Exchange Commission on June 6, 2012. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Ciena assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.