Cybertech Wireless, Inc. Awards Adaptive Broadband a $56 Million, Five-Year Contract for AB-Access Fixed Wireless Broadband Equipment
Initial Purchase Order for First Year Is $8.7 Million
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 7, 2000-- Adaptive Broadband(TM) Corp. (Nasdaq:ADAP - news) announced today that it had been awarded a $56 million, five-year contract to provide its AB-Access(TM) fixed wireless broadband equipment to New York-based Cybertech Wireless, Inc. (CWI), a privately held, full-service, business-to-business Internet Service Provider serving customers throughout Upstate New York.
Adaptive Broadband has received an initial purchase order for $8.7 million to cover the first-year commitment.
Founded in 1994 as a computer bulletin board service (BBS), Cybertech Systems provided communications between customers and the Internet. In 1999, the company founded Cybertech Wireless, Inc., constructing a high-speed wireless network that provides communications services to Rochester, N.Y. Working with technology partners such as Cabletron Systems, Verio and Ronco Communications and Electronics, Inc., CWI provides network communications services from 128 Kpbs up to 100 Mbps, and are expanding their services to 30 other cities in the United States.
Cybertech: Existing Customer Base; Tower Leases/Roof Rights Allows
Quick Deployment
Cybertech is adding fixed wireless broadband to its current product mix and has established master leasing arrangements for deployment of the AB-Access base station and subscriber units on thousands of towers and rooftops. Cybertech has already deployed AB-Access on the 200-foot Time Warner tower in Henrietta, N.Y., and has a relationship with Empire Site Co., Inc., which has rooftop communication sites consisting of municipal housing authorities, Federal VA hospitals and private sector buildings throughout the Northeast. Cybertech also has an exclusive contract to provide wireless broadband, last-mile service to Internet Service Provider Ronco, a high-speed backbone supplier. Additionally, Cybertech is providing wireless broadband service in the Bell Atlantic North and South Territories to Competitive Local Exchange Carrier (CLEC) PaeTec. As a result of its relationship with PaeTec, Cybertech will be in a position to leverage PaeTec's sizable sales force, as well as thousands of its business customers in the 25 markets it serves around the United States.
AB-Access Enables Fast Time-to-Market for Emerging Carriers
``Being first to market with innovative, effective bandwidth solutions is key to winning and keeping a satisfied customer base. Cybertech is focused on providing the highest levels of service excellence to our customers, and we're counting on the wireless AB-Access proven solution to help us succeed. We particularly enjoy the competitive edge AB-Access affords us by allowing us to control the bandwidth by bypassing the local telco carrier, with its attendant access charges,' commented William Palma, president of Cybertech Wireless. There are more than 8,000 ISPs, CLECs and Data Local Exchange Carriers (DLECs) in the United States; all potential AB-Access customers.
``We are pleased to add Cybertech to our roster of customers who are moving aggressively to provide their customers with cheaper, better and faster services. Emerging carriers are truly an entrepreneurial breed and Cybertech, with its innovative business plan and strong telecommunications background, should do well,' said Salvatore S. Benti, Adaptive Broadband's executive vice president.
About AB-Access
AB-Access bridges the last mile, replacing the local loop for business and residential subscribers. It offers data transmission at rates up to 25 Mbps, which provides the capability for real-time video conferencing, transmission of full streaming video, web surfing, and transmission of data files -- all simultaneously and over one connection. Product bandwidth is planned to expand to 100 Mbps in 2000. Adaptive Broadband also plans to offer a portable version of AB-Access in 2000.
AB-Access technology spans the frequency range from 2 to 42 GHz. The first releases for AB-Access are for applications using the 5 GHz U-NII (Unlicensed National Information Infrastructure) and 2.5 GHz MMDS (Multi-channel, Multi-point Distribution Service) frequency bands. Adaptive Broadband plans to introduce an AB-Access product for the 3.5 GHz market in Europe during 2000.
Point-to multipoint wireless networks being deployed with AB-Access include transmission hubs that contain six transmitter/receivers, each having 60-degree access points for complete 360-degree coverage. These access points are each serviced by an ATM-configured transceiver with a 25 Mbps channel, which can be shared by users because bandwidth is dynamically assigned. This scheduling is made possible by the product's proprietary MAC (media access control) software, as well as by ATM's small fixed cell length. The technology allows bandwidth to be supplied with cell-by-cell precision, essentially providing packet-on-demand capability. The ultimate result is that bandwidth of up to 25 Mbps is readily available to all users on the network.
About Cybertech Wireless, Inc.
Cybertech is a full-service Internet Service Provider, offering a complete range of tailored connectivity and communications solutions for businesses. In March 2000, Cybertech (http://www.cybertechwireless.com) announced the successful completion of a private placement, raising $2.5 million in common equity in 48 hours. The capital will be used to fund CWI's expansion in several markets including Buffalo, Syracuse and Albany, N.Y. In addition, PaeTec Communications, Inc. (www.paetec.com), a Fairport, N.Y.-based Integrated Communications Provider (ICP), holds a 12% interest in the company, and its chairman and CEO, Arunas Chesonis, currently sits on CWI's board of directors. PaeTec Communications is the principal subsidiary of holding company, PaeTec Corp. PaeTec Communications offers local, domestic and international long distance services, high-speed Internet access, eCommerce and other data services to medium and large sized businesses, colleges and universities, hospitals, governmental organizations and affinity groups throughout the United States. It currently serves customers in 25 markets and has over 600 employees nationwide.
About Adaptive Broadband
Adaptive Broadband (www.adaptivebroadband.com) is a data networking solutions company that is developing leading-edge technology for the deployment of broadband wireless communication over the Internet. Its AB-Access product is a leading commercial choice for fixed broadband wireless communication.
The foregoing includes forward-looking statements, such as the anticipated growth of fixed wireless broadband markets, that involve risks and uncertainties. Actual events or results may differ materially from those suggested by the forward-looking statement. Factors that could cause actual events or results to differ materially include, but are not limited to, fluctuations in quarterly results, delays in receipt of orders or in the shipment of products, delays in the development of telecommunications and Internet markets and delays in product enhancements. For a more detailed discussion of these and other factors, see ``Risk Factors' contained in Adaptive Broadband's Annual Report on Form 10-K for the fiscal year ended June 30, 1999. |
