NEXTLINK Completes Initial Broadband Wireless
Field Testing in Los Angeles and Dallas
Deployment to More Than 25 Cities Nationwide Underway
MCLEAN, Va.--(BUSINESS WIRE)--Jan. 12, 2000--NEXTLINK Communications, Inc., (Nasdaq:NXLK - news), one of
the nation's fastest growing providers of broadband communications services, announced the completion of its first generation
broadband wireless field tests and the availability of commercial broadband wireless services to a limited group of customers in
Los Angeles and Dallas.
''The technology performed well during the field trials,'' said NEXTLINK Chief Technology Officer Doug Carter. ''There are
very obvious opportunities with our existing and potential customers to provide point-to-point broadband wireless service and
we intend to capitalize on these quickly. Additionally, the first generation point-to-multipoint technology performed as expected,
and we are beginning lab testing of the second generation equipment that we plan to deploy throughout our networks this year.''
NEXTLINK expects that broadband wireless will extend ''fiber-like'' capacity to many businesses that are prohibited from
having fiber networks directly connected to their office buildings due to cost considerations. All access services -- fiber,
broadband wireless, DSL and copper connections -- will be marketed under the NEXTLINK brand name and eventually sold
based on the data speed and capacity. All will come with appropriate service level agreements.
''We have had a very good experience using NEXTLINK's broadband wireless access,'' said Keith Waggoner, chief
operating officer of Dallas-based MacFarlan Real Estate Services. ''The transition was quick, seamless and painless. We've
been happy with the quality of the service and are now offering it to other tenants in our managed building.''
On January 10, 2000 NEXTLINK and Concentric Network (Nasdaq:CNCX - news) announced they had entered into a
definitive agreement for the combination of the two companies, creating a next-generation, broadband communications
company that will provide a full range of voice, data and Internet communications services. The transaction, valued at
approximately $2.9 billion, is expected to close in the second quarter of this year. Over time it is expected that NEXTLINK's
broadband wireless service will provide high capacity connectivity for many of Concentric's data and Internet service
customers.
''Broadband wireless will allow a lot of businesses to participate in the broadband revolution that might otherwise have been
excluded,'' continued Carter. ''And in many cases, it will be the only way these businesses can get the data capacity and
speeds they would like.''
During the field trials NEXTLINK tested broadband fixed wireless point-to-point and point-to-multipoint equipment.
NEXTLINK will continue to evaluate vendors for participation in the company's national rollout this year. NEXTLINK intends
to have broadband wireless service operational in 25 markets by the end of this year.
NEXTLINK provides high quality, broadband communications services to businesses over fiber optic and broadband wireless
facilities across the United States. NEXTLINK currently is providing service in 49 markets. The company is the largest holder
of broadband fixed wireless spectrum in North America, with licenses covering 95 percent of the population in the top 30
markets in the United States. NEXTLINK plans to use wireless capabilities to complement and extend the reach of its local
fiber optic networks in the markets in which NEXTLINK has spectrum. Additionally, NEXTLINK is acquiring exclusive rights
to use certain fibers and a conduit throughout a 16,000-mile high-speed, IP-centric fiber optic backbone network that will
connect over 50 cities in the United States and Canada. The network is expected to be completed in 2001, with NEXTLINK
turning on segments of the network during 2000. Through this unrivaled collection of facilities, NEXTLINK will provide
integrated, end-to-end telecommunications solutions to its customers. For more information, visit nextlink.com.
On January 10, 2000, NEXTLINK and Concentric Network announced a $2.9 billion transaction to combine the companies.
The transaction is expected to close in the second quarter of this year. Concentric Network provides complete Internet
business solutions for small- and medium-sized enterprises, including DSL access, Web hosting and e-commerce. The
company also offers data center services, virtual private networks, dedicated access, and application infrastructure services for
delivering applications over the Internet or a virtual private network.
The statements contained in this release which are not historical facts are ''forward-looking statements'' (as such term is defined
in the Private Securities Litigation Reform Act of 1995). These statements include those describing the enhanced product and
service offerings, the expected timing of the proposed transaction between NEXTLINK and Concentric Network and the
expected timing of the implementation of NEXTLINK's network. Management wishes to caution the reader that these
forward-looking statements, regarding matters that are not historical facts, are only predictions and are subject to risks and
uncertainties and actual results may differ materially from those indicated in the forward-looking statements as a result of a
number of factors including those identified in NEXTLINK's Form 10-K for the year ended December 31, 1998, and other
reports and registration statements filed with the Securities and Exchange Commission. These factors include, but are not
limited to, the combined company's ability to successfully market its products and services to current and new customers in a
competitive marketplace, to design and construct fiber optic networks, install cable and facilities, including switching electronics,
to develop, install and provision LMDS equipment and interconnect that equipment with the Company's fiber networks and
connect the networks, including LMDS equipment to customers and on satisfactory terms and conditions, and certain risks
related to the Company's national network strategy. Additional factors include the ability of NEXTLINK and Concentric
Network to successfully integrate their operations, products and services, and to timely obtain the regulatory and stockholder
approvals that are conditions to closing the proposed transaction.
Contact:
NEXTLINK
Todd Wolfenbarger (media and industry analysts)
425/519-3946 / 206/399-6770 portable
twolfenbarger@nextlink.com
or
Nancy Bacchieri (financial analysts)
425/519-8940 |
