IXC and STAR Telecommunications Enter 20-Year $31 Million Capacity Agreement
Tuesday November 3, 7:01 am Eastern Time
AUSTIN, Texas--(BUSINESS WIRE)--Nov. 3, 1998--IXC Communications, Inc. (Nasdaq: IIXC - news) and STAR
Telecommunications, Inc. (Nasdaq: STRX - news) today announced that STAR will purchase capacity on IXC's U.S. based
digital fiber network. Under a 20-year, $31 million indefeasible right of use (IRU) agreement, IXC will be a major supplier of
network capacity for STAR's domestic long-distance traffic.
IXC will provide STAR with capacity into Los Angeles, Dallas, Atlanta, Miami and Phoenix, as well as capacity into
metropolitan areas opened up by IXC's rapidly expanding national network. The agreement also provides the basis for future
leased capacity, switched services, international capacity and collocations in various cities.
''STAR is aggressively expanding its global operations and we welcome the opportunity to provide a technologically advanced
network to carry their domestic traffic,'' said Ben Scott, chairman and CEO of IXC. ''We look forward to working with STAR
in a long and mutually beneficial relationship.''
''STAR's agreement with IXC shows our commitment to expanding our proprietary domestic network,'' said Christopher
Edgecomb, chairman and CEO of STAR. ''It is critical to our long term strategy that our vendors provide the highest quality
backbone fiber service as well as switched termination services. We are confident that IXC will deliver the technology and
service needed to support the completion of our domestic fiber network.''
The fiber optics being deployed in all stages of IXC's network development utilize state-of-the-art LS non-zero dispersion
shifted fiber on secure rights of way. IXC's fiber optic network supports the most advanced technology, including wave division
multiplexing, which allows significant increases in the speed and volume of information carried across the network. The
OC-192 equipped network also supports a full range of advanced communications technologies, such as synchronous optical
network technology (SONET), as well as ATM (asynchronous transfer mode) and frame relay technologies for advanced data
services.
About STAR Telecommunications
STAR Telecommunications is a multinational long-distance provider offering switched-voice services to long-distance carriers
and commercial customers throughout the world. STAR provides international long distance service through a global network
of digital switching facilities and undersea fiber optic cable systems. STAR Telecom holds domestic switching facilities in New
York, Los Angeles, Dallas and Miami, and international switching facilities in London, Frankfurt, Hamburg, Dusseldorf and
Munich. Visit STAR Telecom at www.startel.com.
About IXC
IXC's network-based delivery solutions are designed to address the speed and capacity requirements of the global
communications market. Having completed the first new coast-to-coast fiber optic network in the United States in more than a
decade, IXC Communications, Inc. is at the forefront of the industry's new class of emerging domestic and international
carriers. IXC offerings include private line, broadband, Internet and long distance switched and dedicated services. IXC is a
publicly traded company listed on Nasdaq under the symbol IIXC. IXC's Web site is at www.ixc-comm.com.
Except for the historical information contained herein, this press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and are subject to the safe harbors created thereby. The Company's future actual results could differ materially from
the forward-looking statements discussed herein. A list of the factors that could cause actual results to differ materially can be
found in the documents the Company files with the SEC, including those contained in the Company's prospectus, and the Form
10-Q for the quarter ended June 30, 1998.
Contact:
IXC Communications, Inc.
Melissa Jackson, 512/231-5247 (Media Relations)
mjackson@ixc-comm.com
or
Greta Wiechman, 888/267-9478 (Investor Relations)
gwiechman@ixc-comm.com
or
STAR Telecommunications
Morgen Walke Associates (Media Contacts)
Chris Danne or Todd Friedman, 415/296-7383
tfriedman@mwa-sf.com
or
Kelly Eno or Ben Helvey, 805/899-1962 (Investor Contacts)
ir@startel.com
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