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Ascend Communications Reaches MajorMilestones: 12 Million Remote Access Ports, Over Two MillionMultiservice Ports
May 5, 1999 11:25 PM
ALAMEDA, Calif.--(BUSINESS WIRE)--May 5, 1999--
Ascend Network Switches Have Allowed Service Providers to Create
Inexpensive Dial-up Internet Access and Value-Added Services, Fueled Explosive Growth; Over 150 Million Internet Users Today Connect Via Ascend Equipment
Mirroring the explosive growth of the Internet, Ascend Communications, Inc. ASND , the leading provider of wide area networking (WAN) and Intelligent Network (IN) solutions for providers and users of the next-generation public network, today announced it has reached a major milestone with the shipment of its 12 millionth remote access port, more than twice as many as the company's nearest competitor.
These ports are the connecting points that allow millions of individuals and businesspeople around the world to access the Internet, through modems, as well as high-speed broadband connections.
These milestones illustrate the extensive growth of the Internet: assuming from 10 to 20 Internet subscribers per port, the 12 million ports represent at least 150 million Internet users around the world connecting via Ascend equipment. Only 3 years ago, even the most optimistic estimates had the worldwide Internet population at just over 30 million total.
"The Internet has clearly changed much about how we work, live and even play -- it has become a major force for both economic and social change, perhaps the largest such catalyst since the advent of the steam engine," said Curtis N. Sanford, executive vice president and general manager of Ascend's Access Switching Division.
"As the first company to focus itself exclusively on building the 'plumbing' or infrastructure for the Internet, Ascend has been a star performer in the high-technology space. We congratulate our employees, customers and shareholders all for helping us reach this significant milestone."
Ascend, which this year is celebrating its tenth anniversary also announced today that it has shipped over two million multiservice Frame Relay and asynchronous transfer mode (ATM) ports. While remote access devices allow connections in to the Internet, multiservice switches are the highways over which travel huge volumes of Internet traffic -- data, video and more recently, voice.
Sanford's remarks correspond with a special ceremony held yesterday at Ascend's Alameda headquarters, in which Carl Showalter, vice president of dial access for UUNET Technologies, an MCI Worldcom Company, joined Sanford as the ceremonial 12 millionth port rolled off the Ascend manufacturing line. At the same time, employees in the company's Westford, Mass. facility feted the equally significant multiservice switching milestone.
Ascend and Its Customers Are Building The Next-Generation Public
Network
Founded to provide high-speed public network communications through Integrated Services Digital Network (ISDN) technology, Ascend has executed flawlessly on a strategy to build solutions for service providers building their next-generation public networks.
This is a packet-based infrastructure that allows a combination of voice, data and video traffic to flow smoothly and rapidly, allowing service providers to increase their revenues while lowering costs, and enabling a whole new generation of applications such as electronic commerce (E-commerce), broadcast video and audio over the Internet, and much more.
The world's largest network service providers are using Ascend technology and solutions to build next-generation public networks. Companies such as AT&T, Bell Atlantic, MCI Worldcom, PSINet, UUNET, Deutsche Telekom, France Telecom and others are deploying tens of millions of Ascend remote access ports, and thousands of Ascend's multiservice switches as they expand their services to keep pace with the dramatic growth of the Internet.
"The list of companies that have helped UUNET to pioneer commercially-available, affordable Internet connectivity is very, very short, and Ascend is definitely on the list," said Showalter.
"It's not an exaggeration to say that we were there together from the very beginning, when the idea of connecting people on their PCs to the Internet via modems seemed like a crazy dream. Ascend has played a significant role in UUNET's success, and we congratulate them today on this major accomplishment."
Ascend also identified early on a new class of data service provider -- emerging carriers, such as competitive local exchange carriers (CLECs) -- and created special packaging, solutions and marketing programs to help these firms compete with companies many times their size. Leading-edge service providers such as Level 3, Qwest, Winstar and Williams Communications are defining the future of communications using Ascend technology.
Major Industry Research Firms Validate Ascend's Market Leadership
Major research firms continue to rank Ascend as the marketshare leader in the key technology markets that enable the next-generation public network. In remote access, and in multiservice switching, Ascend has built a clear leadership position in spite of stiff competition.
Recent reports reinforce Ascend's leadership in these key market spaces:
-- International Data Corp named Ascend is number one in Total World
Wide Remote Access Server Concentrator Port shipments with 34.2
percent market share in Q1 1999
-- Dataquest results also show Ascend as leader of Total Remote
Access Concentrator Ports Shipped with 35.6 percent market share
in Q4 1998
-- Ryan Henkin Kent research studies confirm Ascend as the leader in
Service Provider Core ATM Market Share in 1998 with 33 percent
market share
-- The Dell'Oro Group confirmed in a report that Ascend is the
leader in worldwide MultiService WAN switch revenue to ISPs in
1998 with 46.4 percent market share
-- Cahners In-Stat confirmed Ascend as leader of worldwide
MultiService WAN Switch Revenue to Service Providers with 30.2
percent market share in 1998
About Ascend Communications
Ascend Communications, Inc. ASND develops, manufactures, sells and services wide area networking solutions for telecommunications carriers, Internet service providers and corporate customers worldwide.
For more information about Ascend and its products, please visit the Ascend Web site at www.ascend.com, or send e-mail to info@ascend.com. For Investor Relations, please call the communications hotline at 800/648-3059 or 760/704-4423 (outside the U.S. & Canada).
Additional investor information can also be accessed on our Web site at: ascend.com. Ascend is headquartered at One Ascend Plaza, 1701 Harbor Bay Parkway, Alameda, CA 94502; phone is 800/ASCEND4 and fax is 510/814-2300.
In January 1999, the company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Lucent Technologies, Inc. ("Lucent"), pursuant to which, each outstanding share of Ascend common stock will be exchanged for 0.825 shares of Lucent common stock and each outstanding option or warrant to purchase Ascend common stock will be converted into an option or warrant to purchase Lucent common stock (adjusted for the exchange ratio).
In February 1999, Lucent announced a two-for-one stock split, payable on April 1, 1999, to shareholders of record as of March 5, 1999. Under the terms of the Merger Agreement, the exchange ratio will be adjusted for the effect of this stock split and any similar changes in the capitalization of Lucent.
The foregoing statements may contain forward looking statements that are based on current expectations and involve risks and uncertainties. Actual results could differ materially from these expectations as a result of factors including, but not limited to, the company's success in developing, introducing or shipping new products, competition, the mix of distribution channels employed, the company's dependence on single or limited source suppliers for certain components used in its products, risks inherent in international sales, seasonality and general economic conditions. These and other factors are discussed in Ascend's 10-K, 10-Q and other filings made periodically with the Securities and Exchange Commission.
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