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PictureTel And NTT Establish A Joint Venture Company To Provide
Multipoint Videoconferencing Services
ANDOVER, Mass., April 15 /PRNewswire/ -- PictureTel Corporation (Nasdaq: PCTL), the global videoconferencing company, and Nippon Telegraph and Telephone Corporation (Tokyo Stock Exchange 1st Division: NTT) of Japan, the world's largest telecommunications company, today announced the establishment of NTT Phoenix Communications Network, Inc. (PCN), a joint-venture company specializing in providing multipoint videoconferencing services in Japan.
This new joint venture will provide multipoint videoconferencing services using the NTT PCN multipoint videoconferencing network center -- the largest in the world -- which initially can manage up to 1,000 videoconferencing sites simultaneously. The center is equipped with PictureTel's Montage(TM) multipoint conferencing servers, and will be linked with PictureTel network operations centers in the United States, United Kingdom and Singapore in the near future, which will provide customers in Japan with access to multipoint videoconferencing around the world. In addition, PictureTel also will enable its partners and customers worldwide to hold multipoint videoconferences with Japan.
NTT PCN will provide multipoint videoconferencing services for customers who use the global H.320 standard for ISDN-based calls. Plans call for the company to increase its conference management capabilities and expand its network support to include H.323 (local area network) and H.324 (analog or POTS) conferences, as well.
NTT Phoenix Communications Network will have its headquarters in Tokyo, Japan. Board members and the management team will include representatives from both PictureTel and NTT. NTT will own approximately 44 percent of the company while PictureTel will own approximately 20 percent.
Two of PictureTel's major distributors in Japan, Otsuka-Shokai and Canon Sales; NTT's subsidiaries, such as NTT-TE and NTT-PC; and NOVA, a private nationwide foreign language school in Japan, are minority investors in the joint venture.
Multipoint videoconferencing has been very popular among multi-national conglomerates for the last several years. Now as PictureTel's compact system, SwiftSite(TM), and desktop systems such as the Live200(TM)/Phoenix(TM) are rapidly gaining market share in Japan and around the world, customers are using videoconferencing for exciting new mission-critical applications, and the need for multipoint services is on the rise among small-to-medium sized companies, public organizations and educational institutions.
One such example is NOVA, which last year began piloting interactive remote language lessons at up to 200 sites using Live200/Phoenix and Montage. NOVA enables foreign-language students to "study in your living room" instead of studying abroad. This program proved enormously popular and NOVA intends to start full-scale commercial service using the NTT Phoenix Communications Network beginning in May 1997. NOVA anticipates that 20,000 or more Japanese students will learn English or other languages in this program.
Dom LaCava, President and COO of PictureTel says videoconferencing customers are ready for the type of service the NTT PCN will offer.
"The multipoint videoconferencing market in Japan is growing rapidly. It has two distinct segments -- privately constructed multipoint networks by corporations and organizations, and services provided by a third party such as NTT Phoenix Communications Network. Both segments of the market will continue to grow rapidly and bring the benefits of multipoint videoconferencing to many more people in Japan. PictureTel also will be able to provide multipoint access to Japan for our partners and customers around the world," said LaCava.
Shigeru Ikeda, Executive Vice President of NTT, says, "There are high expectations for the services of this new joint venture among medical/welfare- related public organizations, educational institutions and volunteer organizations. I believe this venture will provide great benefit to the people of Japan."
PictureTel Corporation is the world leader in developing, manufacturing and marketing a full range of videoconferencing technologies. The company's products serve videoconferencing needs from the desktop to the boardroom. PictureTel also markets network conferencing products and a comprehensive portfolio of enterprise-wide services. Additional PictureTel information is available on the Internet at www.picturetel.com. PictureTel videoconferencing eliminates the barrier of distance, enabling people to be Anywhere Now(TM).
NOTE: PictureTel is a registered trademark and Montage, Live200 and Anywhere Now are trademarks of PictureTel Corporation.
Recent PictureTel news releases are available on our Web site at www.picturetel.com or by calling 1-800-716-6000, extension 4 (U.S. and Canada only).
/CONTACT: Kevin Flanagan of PictureTel Corporation, 508-292-5178, flanagank@pictel.com or Diane Parazin of Copithorne & Bellows, 617-450-4300, diane.parazin@cbpr.com/ |
