January 20, 2000 08:59 AM
SAN ANTONIO and EL SEGUNDO, Calif.--(BUSINESS WIRE)--Jan. 20, 2000-- SBC Communications Inc. SBC and Infonet(R) Services Corporation IN today announced an agreement enabling SBC to serve as a sales agent for Infonet's entire industry leading portfolio of global data communications products and services to multinational corporations throughout the United States. The sales agency agreement further strengthens SBC's ability to sell to its business customers seamless data communications worldwide, while opening SBC's robust sales channels to Infonet's products and services.
SBC will further extend its global data reach by selling Infonet's full suite of application-specific product and service solutions for e-business, Enterprise Resource Planning, messaging, Web hosting and security. These services, and others, are delivered through a variety of platforms including Internet, intranet, extranet, frame relay, remote access, and integrated voice and data.
Infonet expects to realize $1 billion in incremental sales revenue during the five-year agreement with SBC.(1)
Financial terms of the agreement were not disclosed; however, SBC will receive a sales commission for the Infonet products and services it sells.
SBC views the sales agency agreement as complementary to its existing data services business. SBC will continue selling its own data communications products and services.
The agreement also designates SBC and Williams Communications WCG as Infonet's preferred providers of network services in the United States. Last year, SBC and Williams formed a strategic alliance that provides for the transport of SBC's long-distance data and voice traffic across Williams' advanced, long-haul network.
"I am very pleased with this opportunity to expand Infonet's presence in the U.S. through this agreement with SBC," said Jose A. Collazo, Infonet's Chairman and President. "SBC has a very strong grasp of their multinational customers' needs, and they understand fully how Infonet is uniquely positioned to meet those needs."
As part of the sales agency agreement, SBC will collaborate with Infonet in its development and marketing of new data products and services. SBC also will be consulted on Infonet's plans to design advanced networks and enhance the quality of products and services.
"This agreement gives SBC access to Infonet's global network, and that's another important step toward becoming one of the few truly global, full-service telecommunications providers, which includes providing customers with data services around the world," said Richard Dietz, President-SBC Global Markets. "Selling Infonet services will boost SBC's ability to help U.S. companies capitalize on the Internet and other data platforms that continue to knock down geographical boundaries while making the global marketplace more accessible than ever."
SBC also will be able to sell access to the Infonet World Network(R), its seamless global data communications network. The World Network from Infonet is an integrated multi-service network that delivers global networking solutions utilizing ATM, Frame Relay and/or IP-based communications technologies. "This agreement is a win-win for both companies," said Berge Ayvazian, President of the Yankee Group, a telecom and Internet research firm. "In Infonet, SBC gets immediate access to sell the services of a proven global communications services provider, they instantly expand their global reach, and their customers will have access to local in-country service and support. For its part, Infonet gains significant sales and marketing power in the United States and a major endorsement for its brand from one of the industry's leaders."
Infonet currently provides services to more than 2,400 blue chip multinational enterprises and has more than 30 years experience in innovating, deploying and managing global data communications products and services. Infonet has announced a network capacity expansion program estimated to keep pace with the expected demand for its current and future products. On Dec. 16, 1999, Infonet completed its IPO, proceeds from which will be used to meet Infonet's network, sales, marketing and service growth requirements.
Infonet manages a network of nearly 1 million kilometers (more than 621,000 miles) of managed circuits, including 750,000 kilometers (about 466,000 miles) fiber-based circuits. The World Network provides access from over 180 countries and more than 3,000 cities worldwide. Internationally, customers will be supported by Infonet's worldwide support organization with local offices in more than 60 countries.
SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its subsidiaries - Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and world-class network, SBC provides local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 87.3 million voice grade equivalent lines, 10.3 million wireless customers and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 22 countries. With more than 200,000 employees, SBC is the 14th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.
Williams Communications Group Inc. WCG , through its subsidiaries, is North America's only exclusively carrier-focused fiber-optic network and the largest independent source of end-to-end integrated business communications solutions--data, voice or video. Based in Tulsa, Okla., Williams Communications has 9,000 employees primarily in North America, with offices in Europe and Asia and investments in South America and Australia. Approximately 85 percent of WCG stock is held by Williams WMB which, in 1985, became the first energy company to harness its core competency as a builder of networks to enable competition in the communications industry. Information is available at www.williamscommunications.com.
Infonet(R) Services Corporation is a world leader in providing global communications services to multinational enterprises. Infonet provides Internet, intranet, ATM, electronic commerce and integrated voice/data solutions plus a full suite of messaging and collaborative products and services. Infonet's services are supported locally in more than 60 countries and territories around the world. The World Network(R) from Infonet is accessible terrestrially or via satellite worldwide. Infonet trades publicly on the New York and Frankfurt stock exchanges under the ticker symbol IN. News and information are available at www.infonet.com.
(1) Infonet's expected sales projections are based on current market conditions and assumptions about contract performance. As with any contract, there is the possibility of cancellation, non-performance or part performance. There may be negative financial or business consequences of contract breach.
Safe Harbor Statement invoking the Private Securities Litigation Reform Act. Some of the statements in this release are forward-looking, based on the best information available to the Company. Specific risks that might affect the outcome of projections referred to in this release include: risk of contract cancellation; risks involving the legal consequences of non-performance; or business consequences of contract breach. General risks involved in investing in Infonet are listed in the Company's Registration Statement on Form S-1, filed with the U.S. Securities and Exchange Commission and available through EDGAR online or through the investor relations portion of the Company's web site, www.infonet.com.
CONTACT: SBC Communications Selim Bingol, 210/351-3991 Shawn Ramsey, 210/352-6979 or Infonet Mike Radic, 310/335-2875
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