The primary component of the IP Network Enhancement Project is the establishment of an end-to-end, IP-based core network that will provide Stratos with a single, integrated communications platform to link and manage all voice and data traffic from its complete portfolio of remote communications solutions. With this consolidated core network, Stratos will have a fully IP-enabled, global infrastructure capable of supporting nearly any IP-based connectivity solution, providing all customers, regardless of technology platform, with seamless interconnectivity and access to a common suite of advanced value-added products and services, such as Voice-over-IP, hosted applications, VPN, and flexible bandwidth options. Converting existing, separate switched-based networks to a single, integrated IP-based network will also generate cost savings through more efficient use of bandwidth and simplified customer provisioning and network management. Wireless Wide Area Network (WAN) Hotspots in the Gulf of Mexico In conjunction with the implementation of its IP-based core network, Stratos is also undertaking an upgrade of its existing Gulf of Mexico microwave network to an IP-based platform, which will be linked to the core network to support newly developed value-added applications. In addition to offering greater bandwidth options, the upgraded microwave network will also be capable of supporting the WiMAX last-mile, broadband wireless technology standard, allowing Stratos to create wireless wide area network (WAN) hotspots in the Gulf of Mexico. WiMAX is a standards-based wireless technology that provides high-throughput, point-to-multipoint broadband connections over long distances, up to 15 miles. WiMAX can be used for a number of applications, including lastmile broadband connections and high-speed enterprise connectivity for businesses. Overall, Stratos expects to invest approximately US$6 million in the implementation of its IP core network and the IP upgrade of its Gulf of Mexico microwave network, both of which are currently underway and scheduled to be fully implemented in the first half of 2005.
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