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Technology Stocks : Ascend Communications (ASND)
ASND 207.04+0.7%Dec 8 3:59 PM EST

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To: scott maragioglio who wrote (32712)1/31/1998 8:55:00 PM
From: pat mudge   of 61433
 
[Williams Co]

Scott --

In an interview of ComNet radio, Robert Machlin, Ascend's VP of Marketing, said the Williams contract was valued at $150M over three years.

Recent press release announcing that win:
<<<
U S WEST Communications Announces Strategic Partnership on
Nationwide Fiber-Optic Network With Williams Communications;
Next-Generation Nationwide Fiber-Optic Backbone Infrastructure to
Support U S WEST's Long-Distance and Data-Networking Expansion
Efforts

DENVER, Jan. 5 /PRNewswire/ -- U S WEST Communications announced today an agreement with Williams of Tulsa, Oklahoma, to be their "anchor tenant" in purchasing dedicated bandwidth over Williams' nationwide, next-generation fiber-optic backbone network.

Williams today announced its re-entry into the telecommunications marketplace as a "carrier's carrier" after the expiration of a non-compete agreement with WorldCom following their sale of the majority of Williams' fiber-optic network to WorldCom in January 1995.

This relationship is another important step in U S WEST's execution of its successful regional and national "data-centric" communications strategy, and helps position the company's impending entry into the inter-state and regional long-distance market.

Use of Williams' network will provide U S WEST with access to approximately 11,000 fiber-optic route miles across the United States -- currently the nation's fifth largest fiber-optic network -- extending to more than 18,000 route miles by the end of 1998. This fiber-optic backbone will help U S WEST better serve its customers in markets across the country, with key network hubs located in San Francisco, Los Angeles, Dallas, Chicago, Atlanta, Philadelphia and Washington, D.C.

The five-year agreement includes commitments for transport capacity to meet U S WEST's anticipated requirements for data and voice services. The agreement also includes an option for U S WEST to extend the relationship for up to an additional five-year period.

U S WEST Communications will receive significant strategic benefit from this agreement:

* It enables the company to develop and build a network that provides nationwide data and interLATA long-distance voice services over a dedicated transport back-bone;

* It enables the company to more cost-effectively continue the national expansion of its successful !NTERPRISE Data Networking Services business, which serves a rapidly growing customer base throughout the United States;

* It allows for a "virtual acquisition" of this transport backbone through a variable, "pay as you go" cost structure without having to commit a significant up-front investment, which fits with the company's previously articulated investment strategies.

"This deal provides a perfect fit for us as we aggressively pursue our growth strategies," said Sol Trujillo, president and CEO of U S WEST Communications. "And the Williams company's vast experience as the 'carrier's carrier,' and as a company that builds value by knowing its customers well, further complements that fit. . . . "
>>>

In trying to piece together the recent Cisco win, I found the following:

This week's USWest announcement:
uswest.com

Map of Williams fiber optic network and areas using Cisco switches:
uswest.com

Vendors named are Pairgain and Cisco:
interprise.com

Based on the Williams win for Ascend and the USWest win for Cisco, it's apparent both companies are good investments.

Later --

Pat
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