Thursday April 23, 10:28 am Eastern Time
Company Press Release
WinStar Awarded $40 Million Data Contract
WinStar Broadband Services to Provide High Speed Backbone for AboveNet Cross Country ISP Network
NEW YORK--(BUSINESS WIRE)--April 23, 1998-- Service Agreement Includes End-To-End Network Management Solutions
WINSTAR COMMUNICATIONS, INC. (NASDAQ-WCII) today announced its WinStar GoodNet unit has been awarded a $40 million broadband backbone service contract from AboveNet, a San Jose, CA, based internet service provider (ISP). The 40 month contract calls for WinStar GoodNet to provide cross country circuits and local loop management to connect AboveNet's high capacity data centers throughout the U.S.
''By continuing to expand its network of high quality, low cost broadband network links between major U.S. cities, WinStar GoodNet is fast becoming the Tier 1 carrier of choice for ISP's and major corporations,'' said Howard E. Taylor, President, WinStar Broadband Services. ''We are providing an end-to-end solution for this customer, packaging the local loops, managing the installation process and providing quality control from our own facilities in each city. When coupled with the synergistic data communications, telephony and Internet services provided by WinStar, we expect our backbone capabilities will have an increasingly positive impact on our revenue and EBITDA performance.''
The AboveNet contract includes multiple clear channel circuits ranging in capacity from DS3 to OC12. The contract calls for installation of circuits between San Francisco, CA, Chicago, IL, and Washington DC, with additional circuits between San Francisco, CA, and Portland, OR; and San Francisco and Los Angeles.
WinStar GoodNet is a leading national Internet service company in the U.S. with points of presence in 27 cities and one of the highest traffic levels of any independent U.S. backbone provider. Through its national network of multi-protocol asynchronous transfer mode (ATM) switches, WinStar GoodNet offers dedicated high-speed Internet access, metropolitan and wide area network data transport services, including virtual private networks, to hundreds of commercial clients. WinStar GoodNet also provides dial-up Internet access to subscribers in Arizona, and estimates that nearly one million additional Internet users are served indirectly through other access providers utilizing the company's ATM backbone. The company has established more than 130 peering arrangements with other U.S. and foreign Internet service providers.
AboveNet Communications, Inc., a privately held corporation, provides non-stop, non-congested Internet bandwidth for Internet Service Providers, Content Providers and companies with mission-critical business to business operations. AboveNet provides complete co-location services, and has in excess of 2 Gbps of capacity on it's national network. AboveNet peers with over 130 networks, and has private peering with more than 25 of these networks.
WinStar Communications, Inc. is a national local communications company, serving business customers, long distance carriers, fiber-based competitive access providers, mobile communications companies, local telephone companies, and other customers with broadband local communications needs. The company provides its Wireless Fiber(SM) services using its licenses in the 38 GHz spectrum. The company also provides long distance, data, Internet and information services.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties which are described in the company' SEC reports, including the 10-K for the period ended December 31, 1997 and the 10-Q for the period ended September 30, 1997.
WinStar is a registered trademark and Wireless Fiber is a service mark of WinStar Communications, Inc.
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Contact:
Financial Community:
Frank Jepson
SVP, Capital Market Relations
(212) 584-4021
or
Press:
Beth-Ellen Keyes
(212) 584-4098
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