WinStar Announces Deployment Plans for Point-to-Multipoint Technology
NEW YORK, Sep 30, 1999 (BUSINESS WIRE) --
WinStar Adds State-of-the-Art Equipment from Siemens and P-Com to
its Nationwide Roll-out
WINSTAR COMMUNICATIONS, INC. (NASDAQ: WCII) today announced its plans
for the commercial rollout of its point-to-multipoint (PMP) service.
As part of an accelerated deployment plan:
-- WinStar will integrate PMP technology into its network in key U.S.
markets during the fourth quarter, including Washington, DC,
Phoenix, Oakland, San Jose, Seattle and Salt Lake City.
-- WinStar has deployed PMP technology in Amsterdam and will deploy it
shortly in other international markets.
-- WinStar today signed an agreement with Siemens Information and
Communication Networks, Inc., which has teamed with P-Com, Inc.
(NASDAQ: PCMS) to manufacture, deploy and install PMP equipment for
WinStar. It is anticipated that purchases under the agreement could
reach as much as $400 million over the next five years. WinStar
has also issued a purchase order to Hughes Network Systems for PMP
equipment and related services. This purchase order is part of a
previously announced agreement that WinStar entered into with Hughes
in August 1998.
-- Lucent has agreed to include these purchases under the $2 billion
financing agreement, which was established between WinStar and
Lucent in October 1998.
"By implementing point-to-multipoint technology, WinStar is able to
reduce the capital costs associated with providing services to
buildings on our network," said David Ackerman, executive vice
president of WinStar's network services group. "The broader geographic
coverage provided by PMP technology allows us to cover more buildings,
thereby putting more customers on-net, which increases our gross
margins. The combination of our multiple PMP suppliers, our detailed
deployment plans and the use of Lucent financing puts us in a position
to aggressively roll out our PMP network across the country." For the
past four years, WinStar has been working with Hughes and Siemens,
leading manufacturers and systems integrators, to develop PMP
technology. As a result, WinStar will realize significant benefits from
this deployment. PMP technology will not only reduce network deployment
costs and allow for more efficient use of spectrum, but it will also
allow WinStar to serve more buildings from each local hub site.
Customers will benefit by reduced costs and the ability to receive
bandwidth on-demand, which will allow them to receive a wide range of
communications services - from voice and videoconferencing to
high-speed data and Internet - on a "pay-per-use" basis. WinStar
Communications, Inc. is a pioneer in providing business customers with
broadband communications services, including local and long distance
phone service, as well as high-speed Internet access, data and
information services. WinStar provides these Wireless Fiber(SM)
services in more than 30 U.S. markets over its own local broadband
networks, using its licenses in the 28 and 38 GHz spectrum, which are
connected to the company's nationwide fiber-optic network. In addition,
the company offers Wireless Fiber services in two international
markets. In the past year, WinStar has become one of the largest
Internet companies in the U.S. Recently, the company announced a
destination Web site for businesses, Office.com(SM), a service from
WinStar. Except for any historical information contained herein, the
matters discussed in this press release contain forward-looking
statements that involve risks and uncertainties, which are described in
the company's SEC reports, including the 10-K for the period ended
December 31, 1998, and the 10-Q for the period ended June 30, 1999.
WinStar is a registered trademark, and Wireless Fiber and Office.com
are service marks of WinStar Communications, Inc.
Copyright (C) 1999 Business Wire. All rights reserved.
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