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Friday August 27, 12:33 pm Eastern Time
Company Press Release
SOURCE: AT&T Wireless Services, Inc.
AT&T Expands Its Multi-Vendor Infrastructure
Strategy To Meet Continuing Demand for Wireless
Services
REDMOND, Wash., Aug. 27 /PRNewswire/ -- As a result of strong demand for its wireless communications service, AT&T
today announced a multi-vendor program that will significantly increase the capacity and reliability of its wireless network in
high-growth, high-use markets while also improving operating cost efficiencies.
The company said it signed letters of intent to install new wireless equipment provided by Lucent Technologies and Nortel
Networks in a number of North American markets. Ericsson is currently the largest wireless infrastructure provider to AT&T
Wireless.
AT&T estimates the multi-vendor strategy using Ericsson, Nortel and Lucent will allow it to meet its equipment and increased
network capacity needs over the next four years for $900M less than the company had previously projected. Financial terms of
the agreements were not disclosed.
''The continued growth in demand for wireless service, combined with the success of AT&T's Digital One Rate program requires
us to bring into balance our portfolio of suppliers,'' said Dan Hesse, President and CEO, AT&T Wireless Services. ''Lucent,
Ericsson and Nortel will provide us with the newest technology available, and this equipment will help us significantly increase the
capacity and reliability of our wireless network.''
Hesse noted that AT&T Wireless revenues grew 42.4 percent in the second quarter of 1999.
''We've selected the latest equipment from Lucent and Nortel to greatly increase our speed and efficiency in adding capacity and
reliability to our wireless network,'' said Frank Ianna, President of AT&T Network Services. ''We believe the new business model
we've put in place with these vendors will also lower our wireless network operating costs.''
Hesse added that the new equipment will allow AT&T Wireless to seamlessly evolve to new third generation digital technology,
which will provide high speed data and global roaming capabilities, among other new services.
Historically, Ericsson and Lucent have been AT&T's primary providers of wireless network infrastructure equipment. AT&T will
be adding Lucent Technologies equipment in the metropolitan New York City area and parts of Los Angeles, in addition to the 11
states where Lucent equipment is already being used. Meanwhile, the new wireless equipment from Nortel will be deployed in
Arizona, California (including parts of Los Angeles), Nevada, Oregon, and Washington. Ericsson will continue to supply equipment
to approximately one third of AT&T's service areas.
Lucent, Ericsson and Nortel will supply equipment and services to AT&T, based on the digital TDMA (Time Division Multiple
Access) IS-136 standard. TDMA is a leading global digital standard that serves more than 19 million customers in the Western
Hemisphere.
AT&T Wireless Services, Inc. operates one of the largest digital wireless networks in North America providing wireless voice and
data communication services. AT&T Wireless Services, Inc. is a wholly owned subsidiary of AT&T Corp. (NYSE: T - news), the
world's leader in telecommunications services and technology.
The foregoing are ''forward-looking statements'' which are based on management's beliefs as well as on a number of assumptions
concerning future events made by and information currently available to management. Readers are cautioned not to put undue
reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of
uncertainties and other factors, many of which are outside AT&T's control, that could cause actual results to differ materially
from such statements. For a more detailed description of the factors that could cause such a difference, please see AT&T's filings
with the Securities and Exchange Commission. AT&T disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
CONTACT: Ken Woo, 425-580-8349 (Office), or 206-915-7212 (Wireless); or Dave Johnson, 908-234-5254 (Office), or
908-672-5793 (Wireless), both for AT&T Wireless Services, Inc.
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