SBC TO USE WORLD-CLASS SUPPLIERS TO HELP BUILD ITS
Next-Generation Broadband Network
Business Editors, High-Tech Writers
SAN ANTONIO--(BUSINESS WIRE)--Nov. 3, 1999--
Company selects industry-leading manufacturers to implement "Project
Pronto" - a $6 billion initiative to accelerate network convergence
and transform SBC into America's largest single broadband provider
SBC announced today the initial primary suppliers it will work
with to create a vast, sophisticated next-generation broadband
network.
Last week, SBC announced a $6 billion initiative - "Project
Pronto" - that will make broadband services available to 80 percent of
its customers over the next three years and accelerate the convergence
of its voice and data backbone systems into a next-generation, packet-
switched platform. SBC will achieve these goals by pushing fiber and
Digital Subscriber Line (DSL) equipment deeper into the neighborhoods
it serves, and deploying the industry's most advanced packet-switching
technology - voice trunking over Asynchronous Transfer Mode (ATM) - to
create a highly efficient and integrated voice, data and video
backbone network. The new network structure is expected to generate
$1.5 billion in annual expense and capital savings by the year 2004.
To implement Project Pronto, SBC will work with six primary
suppliers: Advanced Fibre Communications, Inc., Alcatel, Lucent
Technologies, Newbridge Networks, Inc., Nortel Networks, and Siecor.
"These suppliers share our commitment and vision to making our
next-generation network a reality and making broadband readily
available to all customers," said Steve Welch, SBC's President -
Corporate and Administration Services. "These industry leaders will
give us the state-of-the-art equipment and capabilities to create a
network that is among the most sophisticated, efficient, flexible and
scalable in the industry. SBC has the confidence that these suppliers
will not only deliver the best technology available, but will meet the
time and volume demands of our three-year network build-out."
Today, customers must reside within 3.5 miles of a central office
to receive DSL service. Through Project Pronto, SBC will overcome this
distance limitation by using advanced fiber optics and neighborhood
broadband gateways containing next-generation digital loop carriers to
push DSL capabilities now housed in central offices closer to
customers. This will make DSL service available to approximately 80
percent of SBC customers.
The six initial primary suppliers will provide a range of
state-of- the-art technologies that SBC plans to use to bring Project
Pronto to life: As part of the project, SBC will continue to place DSL
Access Multiplexers (DSLAM) into central offices and deploy
neighborhood broadband gateways and fiber optic facilities throughout
its territories, in both urban and rural areas. Additionally,
ATM-based switching technology will be used to integrate SBC's voice
and data backbone networks and transport voice traffic the same way it
does data - via packets.
SBC's next-generation network will help transform SBC over the
next three years into America's largest, single provider of advanced
broadband services, making super-fast, always-on DSL access available
to almost all of its customers and creating a platform to deliver
next- generation, broadband-powered services.
SBC Communications Inc. (www.sbc.com) is a global communications
leader. Through its trusted brands - Southwestern Bell, Ameritech,
Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One - and
world-class network, SBC provides local and long-distance phone
service, wireless and data communications, paging, high-speed Internet
access and messaging, cable and satellite television, security
services and telecommunications equipment, as well as directory
advertising and publishing. In the United States, the company
currently has 59 million access lines, 10.1 million wireless customers
and is undertaking a national expansion program that will bring SBC
service to an additional 30 markets. Internationally, SBC has
telecommunications investments in 22 countries. With more than 200,000
employees, SBC is the 14th largest employer in the U.S., with annual
revenues that rank it among the largest Fortune 500 companies.
Information set forth in this news release contains financial
estimates and other forward-looking statements that are subject to
risks and uncertainties. A discussion of factors that may affect
future results is contained in SBC's filings with the Securities and
Exchange Commission. SBC disclaims any obligation to update or revise
statements contained in this news release based on new information or
otherwise.
--30--mjc/cgo*
CONTACT: SBC Communications Inc.
Kevin Belgrade, 210/351-2162
pager: 800/975-5605
KEYWORD: TEXAS
INDUSTRY KEYWORD: TELECOMMUNICATIONS
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