Monday April 19, 2:24 pm Eastern Time
Company Press Release
FirstCom Obtains Concession to Provide Fixed Local Telephony Services in Peru
FirstCom becomes first Peruvian telecommunication carrier licensed to compete with incumbent monopoly in local services
CORAL GABLES, Fla.--(BUSINESS WIRE)--April 19, 1999-- FirstCom Corporation (NASDAQ: FCLX - news; ''FirstCom'') today announced that the Ministry of Transportation and Communications of Peru has granted to FirstCom the authorization to provide fixed local public-switched telephony services in Lima and Callao. With resolution No. 146-99-MTC/15.03, as publicized on April 17, 1999 in the official Peruvian newspaper, ''Diario Oficial El Peruano,'' FirstCom becomes the first carrier in Peru licensed to compete in the local telephony market with the incumbent monopoly.
As a result, FirstCom is now positioned to deliver an integrated service offering of local, long distance and Internet/data solutions over a state-of-the-art fiber optic network to businesses and other high volume users in Peru.
Patricio E. Northland, chairman of the board, president and CEO of FirstCom noted, ''We are very pleased that the Peruvian government continues to support FirstCom's initiatives in Peru. Fixed local telephony services are an integral part of our strategy and we are delighted to have met this regulatory milestone. With the completion of nearly 700 kilometers of high speed Cisco ATM/IP based fiber optic network in Lima and Callao, the current installation of Nortel long distance switches and RSI teleport, coupled with licenses to provide long distance, local, and Internet/data services, we are in a unique position to execute FirstCom's strategy to provide fully integrated solutions to businesses and other high volume users.''
Dante Cordova, chairman of the board of FirstCom Peru, and a former Peruvian Prime Minister, added the following, ''We are now the only telecommunications company in Peru positioned to fully compete with the incumbent monopoly to deliver an integrated service offering of local, long distance and value added Internet/data solutions. FirstCom's ability to provide integrated telecommunications solutions over the company's state-of-the-art facilities based networks is a clear competitive advantage in today's market. We intend to continue to work aggressively to complete our build-out during the coming months in order to provide the people of Peru a choice when it comes to telecommunications services.''
Douglas G. Geib II, executive vice president and chief financial officer commented, ''The timing of the Peruvian's government approval that allows FirstCom to compete in local telephony is a pleasant surprise. Because we have already designed the initial phase of the company's local telephony build-out, as well as formally contracted with Nortel for DMS-100 local telephony switches/services, included related financing of up to $10 million, we believe FirstCom is in excellent position to offer local telephony services sometime during the fourth quarter of this year, ahead of our expectations.''
FirstCom Corporation is rapidly emerging as an alternative provider of high bandwidth integrated telecommunication services to business customers in Chile, Colombia and Peru. FirstCom owns state-of-the-art fiber optic networks in each of these countries that are used to provide high-speed connectivity and content to the business community. FirstCom also operates a competitive long-distance carrier in Chile and recently received its license to provide similar services in Peru.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The foregoing statements involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. The matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, including but not limited to economic, competitive, governmental and technological factors detailed in the Company's filings with the Securities and Exchange Commission which readers are urged to read carefully in assessing the forward looking statements contained herein.
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Contact:
Douglas G. Geib II Richard Cooper/Rob Schatz
Chief Financial Officer Investor Relations
(305) 448-4422 (516) 829-7111
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