CLEC INCREASES INITIAL FORECAST ESTIMATES FROM 250 TO 435 COLLOCATION SITES
CLEC identifies NHC's VCCS(TM) technology as the best solution available
on the market to address testing and deployment needs of DSL Service
Providers
MONTREAL, Feb. 8 /CNW/ - NHC Communications Inc. (TSE : NHC) announced
today that their recent agreement with a Competitive Local Exchange Carrier
(CLEC) customer has been amended given that the CLEC has indicated its plan to
accelerate and intensify its deployment of its DSL services. The new agreement
extends the forecast number of units of NHC's VCCS(TM) solutions to be
purchased, from 250 to 435. If fully realized, the total value of the contract
is estimated at a minimum of approximately $26 million over the next two
years. This estimate is based on minimum unit configurations. Modular
expansion may generate additional revenue to NHC as the CLEC's DSL client base
increases.
Pursuant to its latest forecast, the CLEC contemplates that it will be
purchasing, in line with its new anticipated deployment plan, 435 VCCS(TM)
units for deployment in nearly 435 collocation sites, a substantial increase
from their first target of 250 sites under the initial agreement. The CLEC
retains its right to fix the minimum number of units to be ordered under the
agreement through a dynamic forecast process. Of the forecast, NHC has already
received firm orders for 33 units valued at $ 2 million.
``In contrast to competitors' products, the VCCS(TM) Solution allows the
CLEC to completely automate and remotely control loop qualification testing as
well as service deployment and migration, thus allowing it to quickly address
market needs and provide DSL services more cost effectively than any of their
competitors,' stated Sylvain Abitbol, President & CEO of NHC.
For both Incumbent Local Exchange Carriers (ILECs) and CLECs, the key to
delivering services profitably lies with the adoption of a remotely managed
highly flexible Test Access and Deployment solution. The VCCS(TM) Solution can
integrate with third-party DSLAM and DSL Test System vendors, allowing service
providers to benefit from further overhead cost savings than would otherwise
be incurred to train personnel on new equipment.
BACKGROUND - MARKET DYNAMICS
Telechoice, a research firm focusing on communications, projects that by
the end of 2000 there will be 2.1 million DSL lines installed. By the end of
2001, that number is expected to reach 5.1 million. International Data Corp.
predicts that by 2003 the number of DSL households in the United States will
jump to 9.3 million from the current 330,000, while Jupiter Communications
expects 5.7 million DSL users by 2003.
ABOUT NHC COMMUNICATIONS
NHC Communications Inc., is an international leader in the design and
manufacture of innovative physical layer high-speed Switched Accessed
Solutions for the established and next-generation voice/data networks. With a
unique range of technologies developed from years of experience, NHC is now at
the heart of today's Corporate Enterprise Service Market and the
Telecommunications Industry.
This press release contains statements that constitute forward-looking
statements, including statements concerning business strategies and their
intended results, and similar statements concerning anticipated future events
and expectations that are not historical facts. Forward-looking statements
inherently involve risks and uncertainties that could cause actual results to
differ materially from those expressed in or implied by the statements herein.
NHC undertakes no obligation to update these forward-looking statements for
revisions or changes after the date of this press release.
%SEDAR: 00001989EB
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For further information: Anne-Marie Laurin, BDDS Shandwick,
(514) 393-1180; Source: Sylvain Abitbol, President and CEO, NHC Communications
Inc., 1-800-361-1965, Fax (514) 735-8057, E-mail: s.abitbol@nhc.com, Web
site: www.nhc.com
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