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To: marginmike who wrote (42125)	9/21/1999 9:40:00 PM
From: Ruffian	Read Replies (1) \| Respond to of 152472

Q Quoted> 9/21/99 - Software Makes Wireless Phones Widely Adaptable Sep. 21 (San Jose Mercury News/KRTBN)--As the wireless industry trots out the first Internet-ready "smart phones," an even smarter breed lurks over the horizon: mobile phones that can add features and functions in the blink of an eye. These models, which aren"t likely to be sold before 2001, will be able to adapt instantly to the different frequencies and transmission standards used around the globe. One San Jose company wants to go even further, creating chameleon-like cell phones that can change into portable Internet radios, game machines or pocket-size video players. The new approach, known as "software-defined radio," could help consumers keep up with evolving wireless networks without having to swap phones. Instead of dropping $100 or $200 for a new handset, users could add new features on impulse through a phone call. The wireless carriers like the idea, too, because it could ease the transition to high-capacity, multipurpose pipelines that can handle voice, data and video. By installing the technology at their antennas, they could equip their networks to communicate with customers no matter what kind of phones they use, new or old. "It"ll be the way of the future, there"s no question about that," analyst Herschel Shosteck said. Some technical and economic hurdles have to be overcome, a big one being the drain on battery life. Nevertheless, some industry observers expect the technology to start popping up next year at the antennas, where power consumption isn"t a critical issue. In addition to major equipment vendors like Nortel Networks and Lucent Technologies, the companies actively developing software-defined-radio products include two South Bay start-ups, QuickSilver Technology Inc. of San Jose and Morphics Technology of Campbell. The former plans to have its first mobile-phone products in 18 months, and the latter expects to be installing network equipment late next year. The driving force behind the new technology is the accelerating pace of change in the wireless industry, which wants to augment its voice services with mobile Internet access. This acceleration threatens to yield Internet-like cycles of innovation and obsolescence, forcing users to replace their phones frequently in order to take advantage of the latest services. Consumers are already seeing some of this phenomenon. Wireless companies are starting to roll out information services that work only on smart phones, or cell phones with built-in Web browsers and messaging capability. Smart phones can be upgraded to a degree by downloading new software, but the hardware that controls how they communicate isn"t so easily changed. All mobile phones today use chips tuned to specific frequencies and transmission standards, meaning that they"ll work on some networks but not others. That"s why the phone bought from Pacific Bell Wireless, for example, won"t work on the networks run by AT&T, Sprint, Bell Atlantic or Vodafone AirTouch. The incompatibility problem will get worse over the next few years as carriers add higher-speed, "third generation" networks on top of the analog and slow-speed digital ones, putting yet another frequency into the mix. The goal of software-defined radio is to shift those communications functions to programmable components, either in hardware or software. That way, mobile phones and antennas can operate in multiple modes and frequency bands -- including ones that aren"t yet in use. Companies are exploring a number of different routes to that goal. Morphics and QuickSilver have developed microprocessors that can be altered electronically, rearranging the circuits that control how wireless signals are handled. Because the processing is still being handled by chips, not software, it can be done at the very high speeds demanded by wireless communications, said John Watson, a co-founder of QuickSilver. And by using a single reconfigurable chip instead of multiple customized ones, less power, space and money is consumed. Naturally, if it were easy to do all these things, someone would already have done them. Johan Lodenius of Qualcomm Inc., which makes mobile phones and chips, said the differences in wireless networks go well beyond their frequencies and transmission standards. To make the leap from one standard to another is a complex task, he said, adding, "I have yet to see any of those solutions in practical use." Nor is it a simple matter to download delicate programming instructions to a phone, which is something wireless networks don"t do today, Lodenius said. "How," he asked, "do you make sure they won"t freeze?" The notion of software-defined radios had an early backer in the U.S. military, which has "more radios and bands than you can shake a stick at," said Carl Panasik, a member of the technology staff at Texas Instruments. The Pentagon experimented with the technology in the 1980s to squeeze more types of radios into jet fighters, and then in the 1990s to eliminate the Tower of Babel on the battlefield. "The problem," said Bob Miller, head of communications technology research for AT&T Labs, "is that military systems and commercial systems are very, very different." For one thing, civilians worry about costs. AT&T Labs has with Harris Semiconductor developed a set of software-defined-radio chips for use in wireless networks. One of its targets, Miller said, is enabling networks within office buildings to communicate with a variety of cell phones. Morphics recently raised $13.5 million in venture capital to support its efforts. QuickSilver couldn"t line up any support from those sources, Watson said, so it is relying on corporate backers, including BellSouth. Now the concept is being tested by the wireless carriers, who see it enabling their antennas to support current phones and third-generation ones simultaneously. It could also allow carriers in each market to pool their capacity, letting cell phones shift to new networks when they run into busy signals. "That"s the ultimate vision," said John D. Ralston, vice president of marketing and licensing for Morphics. "Seven or eight years from now we"ll be experimenting with that level of flexibility on public wireless networks." The ability to communicate with any wireless network is important not just for cell phones, but also for other types of mobile communications devices, such as car radios or dashboard displays that could connect wirelessly to the Internet. Cell phones with reconfigurable chips, meanwhile, could take advantage of the increasing data capacity of wireless networks to become multi-function information appliances, said Chris Mangum of Venture Consulting Group, a consulting firm that aids start-ups like QuickSilver. The main limits, Watson said, are those imposed by the container the chip is in. Among the possibilities include playing digital music or video, receiving satellite navigational signals and tuning in radio or TV broadcasts. And it"s not just the wireless carriers providing these functions, Ralston of Morphics said. With an open standard, "other people"s neat stuff can be loaded in." For instance, consumers browsing the Web on their wireless phones might come across an intriguing application and download it then and there. Although smart phones can download applications, too, phones with reconfigurable chips would have more flexibility, Watson said. Such adaptability is key to the evolution of mobile phones, said Stephen Blust, a top technologist at BellSouth Cellular and chairman of the Software Defined Radio Forum. "Phones are no longer being viewed as a voice device," he said. "An infocentric appliance is where I"d like to take them." By Jon Healey -0- Visit Mercury Center, the World Wide Web site of the San Jose Mercury News, at sjmercury.com

To: marginmike who wrote (42125)	9/21/1999 10:33:00 PM
From: JohnG	Respond to of 152472

More details on CDMA merger of GTE,VOD,and BAM wireless. Looks like the world will pass AT&T by. Sad to see an American institution go the way of the dinasaurs. JohnG For media information contact: Peter Thonis, (972)507-5367, GTE Susan Kraus, (212)395-0500, Bell Atlantic Jim Gerace, (908)306-7508, Bell Atlantic Tim Brown, 44 16 353-3251 Melissa Stimpson, 44 16 353-3251, Vodafone AirTouch For customer inquiries: Please visit our Customer Care Page Bell Atlantic, GTE and Vodafone Airtouch to Form New U.S. National Wireless Competitor September 21, 1999 With GTE, Will Create Coast-to-Coast Footprint Serving Largest U.S. Wireless Customer Base Editor's Note: For further information related to this announcement please click on the link below: events.c2media.net/bellatlantic-vodafone/. NEW YORK and LONDON - Bell Atlantic Corp. (NYSE:BEL) and Vodafone AirTouch Plc (LSE:VOD; NYSE:VOD) today announced that they have reached a definitive agreement to create a new wireless business - with a national footprint, a single brand and a common digital technology - composed of Bell Atlantic's and Vodafone AirTouch's U.S. wireless assets. Including GTE's wireless assets, the new business, with a value in excess of $70 billion, will serve approximately 20 million wireless customers and 3.5 million paging customers throughout the United States, making it by far the largest wireless business in the country. The new enterprise will have a footprint covering more than 90% of the U.S. population, and 49 of the top 50 U.S. wireless markets, with 254 million gross POPs. The new wireless business combines assets from Bell Atlantic Mobile, AirTouch Cellular, PrimeCo Personal Communications and AirTouch Paging. It will be further strengthened by the addition of the cellular and PCS assets of GTE Corp. (NYSE:GTE), which is expected to complete its merger with Bell Atlantic in approximately the first quarter of 2000. Bell Atlantic-GTE will own 55% and Vodafone AirTouch will own 45%. The companies expect to complete the wireless transaction in six to 12 months. The agreement also provides that Bell Atlantic and Vodafone AirTouch will work together on global business synergies, such as coordinated handset and equipment purchases, global corporate account programs, global roaming agreements, and development of new services, technologies and applications. Ivan Seidenberg, chairman and chief executive officer of Bell Atlantic said, "Through this combination, we are creating the leading wireless business in the United States. This is a logical fit, naturally uniting our U.S. properties and strong management teams, and enhancing the benefits of Bell Atlantic's merger with GTE. "The launch of this great new enterprise is superbly timed to capitalize on a historic trend which is altering the future of the telecommunications industry - the adoption of wireless into the mainstream of American life." Vodafone AirTouch Chief Executive Chris Gent, said, "This agreement represents a major step forward in our U.S. strategy. In a market where penetration levels are relatively low but growth looks set to take off, gaining a nationwide footprint with common technology is of paramount importance in order to remain competitive. "By participating in the creation of what will be the largest and best wireless business in the U.S., eliminating the cost and complications of alternative routes to national coverage and which should be accretive to proportionate EBITDA from the beginning, we expect to maximise value for our shareholders. "In addition, the new business will achieve further benefits from close cooperation with our other operations around the world." GTE Chairman and Chief Executive Officer Charles Lee said, "The addition of Vodafone AirTouch's U.S. domestic wireless assets will greatly accelerate the execution of Bell Atlantic's and GTE's strategy to bring a new, national full-service competitor to the U.S. telecommunications industry. The national coverage area of the new business, with a solid presence on both coasts as well as in the Midwest and the South, significantly increases the area in which Bell Atlantic-GTE will offer both wireline and wireless services. It will increase our opportunity to offer customers around the country a full bundle of communications services. The result will be increased competition for other national players and the creation of an engine for industry-leading growth." The boards of directors of Bell Atlantic and Vodafone AirTouch have approved the transaction. The board of directors of GTE has voted in consent of the transaction consistent with its rights under GTE's merger of equals agreement with Bell Atlantic. The Bell Atlantic-Vodafone AirTouch wireless agreement and the Bell Atlantic-GTE merger are independent transactions. The completion of one is not contingent upon completion of the other. Benefits of the Wireless Business The new wireless business, together with GTE's wireless properties, will have the national scale and scope to realize revenue enhancements, cost savings and capital efficiencies, which Bell Atlantic estimates has a net present value of approximately $7.4 billion. Vodafone AirTouch also believes that revenue enhancements, cost savings and capital efficiencies will be significant. Incremental revenue growth is expected to be driven by a new national brand and enhanced product innovation. The companies expect the new business to achieve expense savings through reduced roaming costs, lower customer churn and increased economies of scale in transport, billing volumes, handset purchases and advertising. Combining the properties' common CDMA (Code Division-Multiple Access) technology platforms will also yield capital efficiencies, simplified integration and superior network quality. The new wireless enterprise will offer products and services on a national basis under a name consistent with the overall re-branding of the combined Bell Atlantic-GTE. It will also offer enhanced value for both consumers and businesses, including flat-rate coast-to-coast pricing plans and the accelerated rollout of next-generation, advanced wireless data services. Headquarters, Board and Management The Bell Atlantic-Vodafone AirTouch wireless enterprise will be managed by Bell Atlantic. The new wireless enterprise's board will have seven members, with four designated by Bell Atlantic and three by Vodafone AirTouch. Mr. Seidenberg and Mr. Gent will be board members. Once the Bell Atlantic-GTE merger closes, Mr. Lee will also become one of the seven board members. Bell Atlantic will nominate the chief executive officer of the wireless enterprise, and Vodafone AirTouch will nominate one other significant officer, initially the chief financial officer. Other leaders of the new business will be chosen from among the three companies. Headquarters will be located in the New York metropolitan area. Approval Process The transaction will require expiration of the applicable Hart-Scott-Rodino waiting period and approval by various regulatory authorities. The companies will explore various options to address overlapping properties, estimated to amount to 3 million wireless customers and approximately 49 million POPs after the addition of the GTE properties. The transaction will also require the approval of the shareholders of Vodafone AirTouch. It will also be subject to the receipt of an exemptive order from the Securities and Exchange Commission or other satisfactory resolution regarding the application of the 1940 Investment Company Act to Vodafone AirTouch and AirTouch Communications, Inc. Finance and Accounting Bell Atlantic will consolidate the revenues and expenses of the new wireless business into its financial results, and the transaction will be accounted for as a purchase. Vodafone AirTouch will use equity accounting for its interest, recognizing a proportionate share of the wireless enterprise's results based on its ownership interest. Vodafone AirTouch and Bell Atlantic have agreed to a dividend policy for the first five years of the combined wireless business such that 70% of adjusted net income (after payment of taxes but before deduction of goodwill amortization), will be distributed as dividends provided that certain credit ratios are maintained. After the five-year period, the board will evaluate future dividend policies. The new business will initially assume or incur up to $10 billion in existing and new debt. Vodafone AirTouch's recourse debt is expected to decline by $4.5 billion. Vodafone AirTouch can elect to sell shares through an IPO in a company formed to hold ownership interests in the wireless business at any time after three years from the closing of the transaction. In addition, if Bell Atlantic were to initiate an IPO (which it could do any time after the close), Vodafone AirTouch will be entitled to pro rata participation. Vodafone AirTouch can also choose to put up to $20 billion worth of its interest to Bell Atlantic or the wireless business between three to seven years from the closing of the transaction. Merrill Lynch & Co., Inc. and Warburg Dillon Read acted as financial advisors and provided fairness opinions to Bell Atlantic. Goldman, Sachs & Co. acted as financial advisor and provided a fairness opinion to Vodafone AirTouch. Chase Securities and Salomon Smith Barney acted as financial advisors to GTE. More details on the assets being contributed by the companies are included in the attached table. Bell Atlantic Bell Atlantic is at the forefront of the new communications and information industry. With more than 43 million telephone access lines and 10 million wireless customers world-wide, Bell Atlantic companies are premier providers of advanced wireline voice and data services, market leader in wireless services, and the world's largest publishers of directory information. Bell Atlantic companies are also among the world's largest investors in high-growth global communications markets, with operations and investments in 23 countries. Vodafone AirTouch Vodafone AirTouch, based in the United Kingdom, is the world's largest mobile telecommunications company. It has mobile operations in 23 countries on five continents, with more than 28 million proportionate customers. Its ventures cover a population of nearly 900 million people. In the United States, Vodafone AirTouch serves 9 million proportionate cellular and PCS customers in 24 states and 22 of the top 30 U.S. markets, including Atlanta, Chicago, Dallas, Detroit, Houston, Los Angeles, Phoenix, San Diego, San Francisco and Seattle. GTE With 1998 revenues of more than $25 billion, GTE is a leading telecommunications provider with one of the industry's broadest arrays of products and services. In the United States, GTE provides local service in 28 states and wireless service in 17 states, as well as nationwide long-distance, directory, and internetworking services ranging from dial-up Internet access for residential and small-business consumers to Web-based applications for Fortune 500 companies. Outside of the United States, the company serves customers on five continents. Visit www.bellatlantic.com, www.vodafone-airtouch-plc.com and www.gte.com for information about Bell Atlantic, Vodafone AirTouch and GTE. NOTE: This press release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Discussion of factors that may affect future results is contained in our recent filings with the Securities and Exchange Commission.