Sprint Press Release
<Sprint to Become First Incumbent Local Phone Company to Convert its Network Infrastructure to Next-Generation Packet Network
NOVEMBER 05, 2001
KANSAS CITY, MO.,
Sprint (NYSE: FON, PCS) Local Telecommunications Division (LTD) today announced plans to convert its existing digital circuit switched network to a packet switched network beginning in January 2003.
Sprint will become the first incumbent local phone company in the United States to convert an entire (Class 5) digital circuit switched network to a packet switched network.
"Sprint LTD currently serves more than 8.3 million access lines. The conversion from the existing switched network to a packet switched network over the next eight years provides Sprint with product and service capabilities that will enable us to be even more competitive in the ever-changing telecommunications marketplace," said Mike Fuller, president of Sprint Local Telecommunications Division
Packet Switching enables multiple phone calls or Internet connections to share the same telephone line. For instance, if there are moments of silence in a telephone call or if data are not being downloaded during an Internet connection, "packets" from another call can be sent across the network.
This next-generation packet evolution will enable Sprint to expand its "footprint" for offering data services such as Asynchronous Transfer Mode (ATM), frame relay and digital subscriber line (DSL) services. "As we migrate toward the next generation packet network Sprint will be able to offer new, advanced solutions for businesses at a much more rapid pace," said Phyllis Robertson, president of Sprint LTD's Business Markets Group.
"Today many subscribers are frustrated that because they are served behind a non-compatible network device such as a Digital Loop Carrier (DLC), they can't get high-speed data services. The deployment of this technology will circumvent these bottlenecks, said Jim Hansen, senior vice president, Sprint LTD Network.
"Packet switching will also enable Sprint to provide customers with more reliable and robust data services."
As Sprint continues to invest capital within its local territories, consumers will have the opportunity to purchase new products and services much faster than with the existing network, because of the architecture infrastructure. Packet switching will require fewer host facilities to load software for new features.
"This investment is another example of our commitment to the communities Sprint LTD serves," said Tom McEvoy, president, LTD's Consumer Markets Group.
From a network perspective, packet switching will reduce capital expenditures set aside for future growth. It will also create efficiencies that will enable Sprint to meet the demands of customers, while addressing capacity growth.
The conversion will consist of an entire network evolution including both Class 4 and Class 5 components to packet utilizing subscriber line over ATM (SloA) technology. The process will combine three separate "overlay" networks into a single, converged network for voice, data and private line services.
Nortel Networks will provide products and services for Phase I of the packet switched network conversion. Phase I begins January 2003 and ends in July 2006, and includes the conversion of 3.6 million access lines. Throughout Phase I, Nortel Networks will be responsible for all product delivery and turnkey procedures including removal of circuit equipment, installation and testing of new packet equipment and initiating full functionality. The deployment activities will be transparent to Sprint customers. Prior to deployment, Sprint will provide information to the customers and communities scheduled to receive this new solution.
"Sprint and Nortel Networks continue to work together to leverage technology innovation for competitive advantage," said Frank Plastina, president, Metro Networks, Nortel Networks.
"Together we will build a complete packet voice solution for both the access and core network, enabling Sprint to realize sustainable cost reductions, while providing a foundation for the delivery of new application and services in the future."
About Sprint
Sprint is a global communications company serving 23 million business and residential customers in more than 70 countries. With more than 80,000 employees worldwide and $23 billion in annual revenues, Sprint is widely recognized for developing, engineering and deploying state of the art network technologies, including the United States' first nationwide all-digital, fiber-optic network. Sprint's award-winning Tier 1 Internet backbone is being extended to key global markets to provide customers with a broad portfolio of scalable IP products. Sprint's high-capacity, high-speed network gives customers fast, dependable, non-stop access to the vast majority of the world's Internet content. Sprint also operates the largest 100-percent digital, nationwide PCS wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities.
About Nortel Networks
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multi-media services spanning Metro Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about the Nortel Networks can be found on the Web at www.nortelnetworks.com.
Nortel Networks is a trademark of Nortel Networks.
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