GOOD NEWS:Monday May 11, 9:00 am Eastern Time
Company Press Release
SOURCE: GST Telecommunications, Inc.
GST to Build Next Generation Competitive Network With
Nortel (Northern Telecom)
VANCOUVER, Wash., May 11 /PRNewswire/ -- Nortel (Northern Telecom) and GST Telecom,
Inc., a wholly owned subsidiary of GST Telecommunications, Inc. (Nasdaq: GSTX - news) today
announced an agreement to jointly build a ''converged network'' -- integrating data, voice, and video
on a single network using a combination of packet, frame, and cell technologies. GST will deploy the
next generation Virtual Integrated Transport and Access (VITA) network using Nortel's Passport
and Concorde ATM switches -- complementing its existing network of Nortel voice, access, and
optical network equipment.
The initial phase of GST's VITA network is valued at approximately U.S. $10 million and slated for
operation in the third quarter of 1998. GST's network evolution plans involve the convergence of
traditionally disparate networks for seamless end-user connectivity, reduced costs, and flexible
bandwidth management. The converged VITA network will deliver integrated data, voice, and video
communications over a common infrastructure using a packet, frame, and cell (PFC) architecture.
The network will address corporate intranet and Internet access as well as high-speed network
transport. GST will deploy this backbone network across its existing western city rings and long haul
fiber routes, complementing the 12 Nortel DMS-500 switches the Company already operates
throughout its territory in the western United States including Hawaii, California, Arizona, New
Mexico, Oregon, Washington, Idaho, and Texas. Once the VITA backbone is operational,
additional cities and markets will be added as business and customer demand dictates.
''GST is uniquely positioned with its extensive fiber optic networks throughout the Western United
States. Deployment of Nortel's advanced ATM technology will enable us to provide seamless
services throughout GST's local and long haul networks, a major development in network
technology,'' stated John Warta, chairman and chief executive officer of GST Telecommunications.
''This clearly demonstrates GST's leadership in changing the competitive landscape by providing a
single technology platform for not only local service but also long haul competitive networks. We are
pleased to once again lead the industry with such strategic initiatives.''
''This network exemplifies the true meaning of webtone with secure, reliable, integrated network
access and transport,'' said T.J. Fitzpatrick, vice president and general manager, Carrier Data
Networks, Nortel. ''This leverages our strength in building some of the most robust networks in the
world. Nortel is committed to helping forward-thinking service providers, such as GST, build this
type of converged network.''
''Data has eclipsed voice as a percentage of PSTN (public switched telephone network) traffic and
continues to grow,'' said Kevin Wright, chief technology officer of GST. ''GST and Nortel share a
vision for consolidating frame, cell, TDM (time division multiplexing), voice traffic, and other services
onto a unified infrastructure. GST plans to leverage Nortel's expertise in data technologies to deliver
a network that remains ''technology-independent'' for both access and transport as well as reduce
networking operating costs and provide customers with quality services at a very attractive price.''
''We have been extremely pleased with Nortel's responsiveness to date,'' said Joseph A. Basile, Jr.,
president and chief operating officer of GST. ''Integrating transport and access allows us to change
the rules of traditional competition and speed delivery of the high-bandwidth integrated services our
customers are demanding.''
Commenting on the agreement with GST, Greg Merritt, vice president of marketing, Carrier Data
Networks, Nortel, stated, ''Nortel is pleased to work with GST on taking the first step towards
building a true 'virtual network' infrastructure -- an ATM-based multi-service network which is able
to support voice, IP, frame, and other advanced data services. Nortel's network evolution plan
allows GST to implement an IP optimized network, and to take advantage of advancements in
switching and routing performance as they become available.''
The Nortel Passport product portfolio offers cost-effective, reliable, and secure wide area network
(WAN) infrastructures for enterprise and service provider networks. Concorde, Nortel's
high-capacity ATM core switch, enables carriers to efficiently deploy and manage large ATM
networks.
GST Telecommunications, Inc., headquartered in Vancouver, Wash., currently operates
Competitive Local Exchange Carrier (CLEC) operations on an integrated fiber network throughout
the western United States and Hawaii. Facilities-based GST provides a broad range of
telecommunications products and services including local dial tone, long distance, Internet, and
enhanced data services such as electronic commerce. GST continues to focus on its western regional
strategy by anchoring its CLEC networks in local markets and connecting them via long haul fiber
networks. Visit GST's web site at www.gstcorp.com.
Nortel works with customers in more than 150 countries to design, build and integrate their
communications products and advanced digital networks. Customers include public and private
institutions; Internet service providers; local, long-distance, cellular mobile and PCS communications
companies; cable television companies; and utilities.
Nortel had 1997 revenues of U.S. $15.5 billion and has approximately 73,000 employees
worldwide.
Visit Nortel's web-site at www.nortel.com.
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