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To: Kayaker who wrote (2229)	10/12/1999 12:43:00 PM
From: JGoren	Respond to of 13582

Ericsson Secures $180 Million Next-Generation Network Order From BT STOCKHOLM, Sweden--(BUSINESS WIRE)--Oct. 12, 1999-- Turning BT's existing UK telephony network into Europe's first hybrid broadband/narrowband network for new generations of voice, Internet, data and multimedia services Ericsson (Nasdaq:ERICY) has been awarded a contract worth $180 million by BT to supply next-generation switch nodes that will transform BT's existing telephony network into a high-capacity, Internet-enabled network architecture for all types of future information and communication services. This is the second phase of firm orders received by Ericsson as part of the $440 million frame agreement announced with BT in January 1999. This tranche of the contract covers the supply of up to 51 Ericsson AXE/AXD 301 hybrid (narrowband/broadband) nodes for BT's inter-city backbone network. The contract also includes an element of managed services over the next five years. The hybrid nodes will give BT the potential to build a unified, multi-service backbone network capable of carrying all narrowband services such as voice calls, as well as broadband services such as Internet and multimedia services. It will be the first large-scale application in Europe of a new network migration strategy developed by Ericsson, to evolve an existing narrowband network into a hybrid broadband/narrowband network. "BT is pioneering a completely new way of building a 'next-generation' network," said Paul Reynolds, Managing Director of BT Networks. "This network migration strategy, being managed in partnership with Ericsson, allows us to build on the core strengths of our existing UK backbone network, and expand its traffic capacity." The deployment of the Ericsson hybrid nodes will provide the extra network capacity needed to cope with the rapid traffic growth from BT's own services, especially Internet-based services, and also handle rising levels of voice and data traffic carried for other licensed operators. This latest order follows the successful introduction into service of the first of the new AXE trunk switches in the BT inter-city network in mid-September. This was implemented in a 'hot swap' -- a new technique developed jointly by BT and Ericsson, to allow a new switch to be introduced into a live network almost instantaneously, without the usual gradual transfer of traffic from the old to the new switch. Hybrid nodes Each of Ericsson's new hybrid nodes to be deployed in BT's UK inter-city network will consist of the latest Ericsson AXE switch, for circuit-switched voice traffic, integrated together with an Ericsson AXD301 ATM switch for packet-switched data traffic. This creates a common infrastructure for both voice and data traffic. It is the ATM switch part of the nodes that will allow Internet-based services to be carried economically and flexibly. BT currently has one of the Ericsson 40Gbit/s ATM switches undergoing evaluation in its laboratories. UK initiative attracts global interest BT was the first European telco to choose Ericsson's hybrid network strategy as the preferred way to introduce next-generation broadband capabilities into a legacy narrowband network. The BT decision has attracted considerable worldwide interest, and in recent months two other European telcos have chosen the same network migration path, and chosen Ericsson as the supplier. They are Telia Denmark and Dutch-based KPN International. Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers -- network operators, service providers, enterprises and consumers -- the world over. Please visit Ericsson's Press Room at: ericsson.se CONTACT: Ericsson Kathy Egan Gary Pinkham 212/685-4030 KEYWORD: INTERNATIONAL EUROPE BW0246 OCT 12,1999 8:55 PACIFIC 11:55 EASTERN

To: Kayaker who wrote (2229)	10/12/1999 1:00:00 PM
From: Ruffian	Respond to of 13582

Gates & Telecom> October 12, 1999 Microsoft CEO Gates Highlights Firm's Ties to Telecom Industry Dow Jones Newswires GENEVA -- Microsoft Corp. Chairman and Chief Executive Bill Gates outlined the challenges and opportunities ahead for the communication and computing industries in a keynote address at the Telecom '99 trade show. Mr. Gates said he expects use of digital subscriber line, or DSL, technology to "explode," although the process of getting high-bandwidth access into homes is a "challenge" now. He also said he expects "phenomenal growth" in cable modems. Cable modems and DSL are competing high-speed Internet services offered by cable-TV companies and phone companies, respectively. Mr. Gates also discussed Microsoft's role as a technology provider and a partner for service providers in the effort to speed the development of broadband networks. "Software will play a critical role in helping businesses and consumers gain universal access to their information," Mr. Gates said. "Microsoft's mission is to provide the technology and platform building blocks that will enable new services to be deployed on broadband networks and to integrate with the PC, television and telephone, as well as a new generation of intelligent devices." While Mr. Gates focused on introducing "smart objects" -- a phone that featured unified messaging and Internet access, for example -- he stressed that the PC isn't to be underestimated. "The PC continues to surprise analysts each year. For the past four or five years people have said maybe this is the year volumes will go down, but in fact they've gone up." But while he said Microsoft itself sometimes invests in pursuit of the goal of accelerating broadband network development, he reassured his audience that the software giant takes minority positions. "It is important to note we stay focused on what we do, which is software," said Mr. Gates. "We want to get up each day and think about software." "There's a whole new way of working here that has to be brought about. That's the demand that justifies the high levels of investment we see today," Mr. Gates added. Mr. Gates said Microsoft saw Telecom '99 as an opportunity to highlight its partnerships with telecommunications companies and highlight its own commitment to those partnerships. He said a similar collaboration existed between hardware producers such as Intel Corp. and Compaq Computer Corp. and Microsoft in earlier years. "Today, I would say that our work with telecommunications companies is, if anything, equally important," Mr. Gates said.