Cisco Systems announced that it has made an investment of US$50 million in China Communications Services Corporation Limited (CCS), on Thursday, making the firm the largest foreign investor in the Chinese telecom company.
Under the terms of the agreement, Cisco and CCS will jointly provide managed telecommunications services, such as network operation and administration, to enterprise customers in China. The two companies will also provide customers with new network solutions, including IP infrastructures, digital video, and 3G platforms
China is an extremely important market for Cisco, and in cooperation with CCS, we intend to help make China one of the most connected countries in the world, said Owen Chan, senior vice president of Cisco's Asia Pacific business. By working with CCS, we hope to help Chinese businesses adopt and deploy new productivity-enhancing communications services.
Cisco has already invested nearly $700 million into the country in past deals.
The company has been expanding beyond its core business of data switches and routers, entering new business areas such as IP telephony, high-end teleconferencing, and other data related services.