SOURCE: ZyXEL Communications

March 25, 2008 11:00 ET

Rio Networks Selects ZyXEL Access Equipment for Differentiated Value-Added High-Speed Internet Services

ZyXEL's Multi-Service Access Node Delivers Flexible, Scalable and Cost-Effective Platform for Rich Voice, Video and Data Services

ANAHEIM, CA--(Marketwire - March 25, 2008) - ZyXEL Communications, Inc., a leading provider of secure broadband networking, Internet connectivity and routing products, today announced that RIO Networks, a provider of innovative communications services, has selected their Multi-Service Access Node (MSAN) product line to deliver high-speed Internet services to their customers. ZyXEL will provide RIO Networks with a host of products from its MSAN product line and CPEs, enabling RIO Networks to offer its customers an unprecedented level of value-added high-speed networking services.

EMBARQ Logistics, the distribution and supply chain arm of Embarq Corporation (NYSE: EQ), distributor of ZyXEL's products for telcos and service providers, will be involved in the order fulfillment process with RIO Networks.

"We recognized early on the need to be able to deliver high bandwidth applications for IPTV, videoconferencing and multimedia solutions to our customers," said RIO Network's president, Mark Bilton-Smith. "After a thorough process of due diligence, we chose ZyXEL for its breadth of product offerings as well as their flexible, cost-effective and most importantly -- scalable platform."

RIO Networks will deploy ZyXEL's end-to-end access solution including their IES-5000 MSAN with ADSL2+, VDSL2 and POTs line cards and their ADSL2+ gateway, the P660HW. The IES-5000 enables RIO Networks to offer ultra high-speed (50Mbps) Internet over VDSL2 in the short loop and bonded ADSL2+ technology for the longer loop; super high-speed Internet access using ADSL2+ technology for longer loop as well as VoIP service using a POTS card, alleviating the need to install VoIP adapters in homes and offices.

Other key advantages of the ZyXEL solution include:

--  Platform with all QoS features for IPTV, Video on Demand (VoD)
--  Increased network stability with a decrease in network costs
--  Reduced support cost and down time with increased network utilization
    and profit per user
--  Reliable remote management and troubleshooting
--  Solid technical service and support
    

"RIO Networks understands the basic need for higher speed Internet at an affordable price," stated Bilton-Smith. "However, this is only the beginning of our commitment. The average broadband download speed in the US is only 1.9 Mbps, compared to 61 Mbps in Japan, 45 Mbps in South Korea, 18 Mbps in Sweden, 17 Mbps in France and 7 Mbps in Canada, according to the Communication Workers of America. Our ZyXEL deployments will assist with economic growth, community involvement, jobs, education, security, advertisement, research and entertainment."

Partnering with ZyXEL affords RIO Networks the opportunity to truly differentiate itself from competitors by being able to offer its customers a comprehensive suite of flexible, scalable cost-effective solutions. Both RIO Networks and ZyXEL recognize and understand that the demand for high-speed Internet access continues to increase.

"We recognize that no longer is it enough to simply offer broadband Internet. To attract new customers and retain existing customers, service providers must offer value-added video-on-demand, IPTV and a variety of other multimedia services," said ZyXEL's Munira Brooks, senior vice president of sales and marketing. "By partnering closely with RIO Networks, we can provide them with best-in-class solutions which in turn, will allow them to offer their customers flexible and cost-effective communications options."

"RIO will be able to offer subscribers an impressive variety of converged services that include voice, data and video," said Don Green, director of marketing and product management at EMBARQ Logistics. "It is equally impressive because they will be able to do this with a high degree of flexibility and cost-effectiveness due to the solution from EMBARQ Logistics and ZyXEL."

"The beauty of the ZyXEL solution is that we simply change line cards and customers can receive both phone and Internet on one cable for a much lower cost. We can now offer two levels of bandwidth support that can be deployed with a VDSL2 line card with 50Mbps for customers close to the base and for customers further away we can use a ADSL2+ card and still utilize the same platform," noted Bilton-Smith. "We now have a scalable solution that allows us to add capacity where we need to for an optimized investment that is good for the customer and good for our bottom line."

In partnering with ZyXEL, RIO Networks had very specific objectives in mind, including increasing monthly sales revenues, increasing network utilization and reducing costs. RIO wanted to offer public switched telephone network (PSTN) voice services with lower costs and without the need for massive infrastructure changes. Additionally, RIO wanted to offer customers high-speed Internet, video and VoIP services and wanted an easy-to-use, unified configuration that offered remote management capabilities.

"To be competitive and to truly differentiate ourselves in the marketplace we needed to be able to offer our customers optimized communication solutions designed for today and tomorrow," said Bilton-Smith. "To do that, we needed to be able to provide customers with a cost-effective and scalable platform that was easy to deploy and upgrade. With ZyXEL's comprehensive suite of products we now have a platform that allows us to address a wide range of customer needs from those requiring super high-speed bandwidth as well as lower speed bandwidth."

With ZyXEL's MSAN, RIO Networks' residential and business customers will now be able to choose which level of broadband service they want. Through one chassis, the company can now simply change line cards and offer a VoIP option for an additional fee. The customer will see a seamless transition from one application to another.

About RIO Networks

RIO Networks is a provider of innovative solutions that exceed our customer's needs. We create Value. Our "Whatever It Takes" philosophy provides our customers superior services, support, reliability and on time installations. Our dedication for success will outperform our competitors for generations to come. "We are communications."

About EMBARQ Logistics

EMBARQ™ Logistics, a subsidiary of Embarq Corporation (NYSE: EQ), is a supply chain integrator serving network service providers, manufacturers and contractors throughout North America. With a national footprint, including experts in logistics; engineering, integration and deployment; and telecommunications equipment, EMBARQ Logistics offers supply chain solutions recognized for their innovation, effectiveness and efficiency.

EMBARQ Logistics' network, comprised of best-in-class IT systems and strategically located distribution centers, provides customers a highly reliable infrastructure to meet a wide variety of supply chain needs. For more information, visit www.embarqlogistics.com.

About ZyXEL Communications

ZyXEL Communications, Inc., with North American headquarters in Anaheim, California, is one of the world's foremost suppliers of broadband networking and Internet connectivity/routing products. ZyXEL is focused on developing MSAPs, xDSL DSLAMs / modems / gateways, cable access, broadband-sharing, WiMAX, VoIP, wireless and security solutions for a large target audience including Telcos, cable operators, ISPs, small-to-medium sized businesses, SOHO, residential and institutional MxU (multi-tenant unit/multi-dwelling unit) markets. Some of ZyXEL's largest customers include: Sprint, Time Warner, Charter, Earthlink, Chunghwa Telecom, Deutsche Telekom, France Telecom, Telefónica Brazil, Telia, Verizon and many others. ZyXEL's North American distributors include Embarq, Ingram Micro, Tech Data and Wynit. ZyXEL offers its channel partners industry leading incentives with a full line of enterprise-class products through the North America ZySTAR Channel Program. For more information on ZyXEL Communications and its broadband solutions, visit the company's website at http://www.us.zyxel.com.

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