Below is a press release:
Lucent Technologies, NextWave Sign Wireless Network Equipment Deal
for Northeast Markets
PR Newswire - November 25, 1996 09:26
SAN DIEGO, Nov. 25 /PRNewswire/ -- NextWave Wireless Inc., a subsidiary of NextWave Telecom Inc., and Lucent Technologies Inc. have signed an agreement under which NextWave will purchase $200 million in CDMA-based personal communications services (PCS) infrastructure equipment and related services.
Lucent will finance the purchase of its equipment according to the terms of a detailed vendor credit facility, subject to NextWave's fulfillment of certain conditions and the execution of further financing documentation.
The deal with Lucent is the latest in a series of strategic agreements for NextWave. Under a memorandum of understanding, Lucent and NextWave have been conducting field trials with MCI Telecommunications Corp. in the Washington, D.C. area. The companies have been testing a PCS demonstration system that has been installed at MCI's corporate headquarters. Earlier this year, under a separate contract, MCI committed to buy at least 10 billion minutes of airtime from NextWave.
Under the latest agreement, NextWave will use PCS network equipment, which includes Lucent Technologies 5ESS(R) switches and PCS CDMA base stations, to build networks in the New York, Boston, and other markets. Lucent has the option to supply up to another $800 million of infrastructure equipment and related services for use in NextWave's Mid-Atlantic and Midwest markets.
"This agreement represents another major milestone in NextWave's PCS
network deployment, and we are delighted to have Lucent as a key supplier of the most advanced PCS network products," said Allen Salmasi, Chairman and Chief Executive Officer of NextWave. "Lucent's products are well-positioned to deliver on the future integration of local access utilizing the CDMA wireless technology."
"We are pleased to be a part of the launch of NextWave's business. We'll use the strength of our CDMA technology, our ability to rapidly deploy and install wireless equipment, and our networking experience to support NextWave's efforts," said Doris Jean Head, Lucent Technologies Vice President. "This important new relationship further validates our position as the industry's leading supplier of CDMA technology."
CDMA is a digital version of wireless service. It offers improved call clarity and provides greater network capacity and service reliability. CDMA also offers a host of new calling features and service capabilities, such as over-the-air service activation.
Through its participation in Federal Communications Commission-sponsored auctions, NextWave won 63 PCS licenses, representing 110 million potential customers. The licenses cover major metro areas in the U.S., including New York, Los Angeles, Washington/Baltimore, Boston, Houston, Minneapolis, Denver, Seattle, Portland, and San Diego, where the company activated its first
demonstration PCS system.
NextWave Telecom Inc. (www.nextwavetel.com) is the parent company of
NextWave Personal Communications Inc., NextWave Wireless Inc., and TELE*code Inc. NextWave PCI was formed to participate in the "C-block" PCS auction, which was reserved for small businesses and entrepreneurs. NextWave Wireless acts as an operating company and plans to construct facilities and provide wholesale PCS in conjunction with its strategic partners. TELE*code was formed to provide CDMA-based products and engineering services. NextWave Telecom is a privately held corporation with headquarters in San Diego and New
York and offices in Los Angeles, Washington, D.C., Boston, Dallas, Orlando, Cincinnati, Philadelphia, and Seoul, Korea.
Lucent Technologies designs, builds, and delivers a wide range of public and private networks, communications systems and software, consumer and business telephone systems, and microelectronics components. Bell Laboratories is the research and development arm for the company. Lucent Technologies was formed as a result of AT&T Corp.'s restructuring and became a fully independent company -- separate from AT&T -- on Sept. 30, 1996.
SOURCE NextWave Telecom Inc.
CONTACT: Jennifer Walsh of NextWave, 202-371-2275 or Mary Ward of Lucent Technologies, 908-559-6419 |
