KMC Telecom Selects LU to Build Packet Network
KMC to Use Lucent's Revolutionary Packet Products to Deliver Advanced Services to
Customers in Small- and Mid-Size Cities
BEDMINSTER/MURRAY HILL, N.J.--(BUSINESS WIRE)--Dec. 14, 1999-- KMC Telecom
and Lucent Technologies (NYSE: LU - news) today announced a wide-ranging three-year
expansion of their relationship for equipment and services that will form the foundation of
KMC's high-speed integrated data, Internet and voice network. KMC plans to build and
expand its networks using Lucent's 7R/E (tm) Packet Solutions, the PathStar(tm) Access
Server and Stinger(tm) in small- to mid-sized cities.
The relationship, which includes financing, is valued at up to $900 million over three years
and Lucent will continue as KMC's principal equipment supplier. The vendor financing is
subject to certain conditions and completion of the final finance agreement.
The 7R/E solution will enable KMC to offer voice over IP service in cities where 5ESS©
switches are already in use. It delivers today's calling features over packet networks and
enables end users to have the same voice quality as provided over traditional circuit
networks. In new mid-sized markets including Charleston, S.C., the 7R/E solution, combined
with Stinger, Lucent's new DSL access concentrator, will enable KMC to offer data and voice
services using the most advanced DSL (digital subscriber line) technology available.
Stinger's advanced features enable it to deliver voice traffic over DSL with the same quality
and reliability that customers receive today.
``Our goal is to bring our customers in smaller cities around the country all the sophisticated
services available in larger metropolitan areas,' said Michael A. Sternberg, president and
CEO of KMC Telecom. ``Lucent's ability to offer a full system of leading-edge,
cost-effective, carrier-class technology, combined with unparalleled services and support,
led us to expand the already strong relationship between our two companies.'
In smaller markets, KMC plans to use the PathStar Access Server to provide integrated
services over IP. The PathStar will also be deployed along with Stinger to provide
feature-rich voice and data services over DSL over an ATM backbone. The PathStar system
integrates the local loop termination, a Class 5 telephony system, a voice-over-IP gateway
and an edge router into one single network element, thereby saving equipment costs and
precious central office space. Deployments in the first markets have already been completed.
``KMC has demonstrated its commitment to growth and we're delighted to be providing them
with the products and services to help them achieve that growth,' said Janet Davidson, vice
president for North America emerging markets at Lucent Technologies. ``Choosing the
PathStar and the 7R/E puts KMC in position to enhance and evolve its networks to packet
technology while continuing to offer its customers the most advanced, reliable and
sophisticated services available.'
With a significant investment in local fiber optic networks and all-digital voice and data
switching equipment, KMC Telecom is among the first companies to bring choice in local
telecommunications to smaller cities in the U.S. The company offers business customers its
ClearStar(tm) integrated telephone services, ClearFiber(tm) high capacity, high-speed
digitized voice, data and video communications, and ClearXpress(tm) switched voice
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