Verizon Wireless to Invest More Than $3 Billion in Its
Network in 2000; Will Introduce Coast-to-Coast Short
Messaging
Coast-to-Coast CDMA Digital Network Lays the Groundwork for Highest Quality Service,
Aggressive SingleRate Pricing, Wireless Internet Access
NEW YORK, April 4 /PRNewswire/ -- Verizon Wireless, the new company formed by the U.S. wireless interests of Bell
Atlantic Corporation (NYSE: BEL - news) and Vodafone AirTouch Plc (NYSE and London: VOD), today unveiled plans to
continue to strengthen its network to provide the nation's best wireless service for its rapidly growing customer base. The two
companies today begin operating as one company along with PrimeCo Personal Communications. Later this quarter, when Bell
Atlantic and GTE Corporation (NYSE: GTE - news) are targeting the close of their merger, Verizon Wireless will be further
strengthened by the properties of GTE Wireless. At that time Verizon Wireless will serve nearly 90% of the U.S. population
and 96 of the top 100 U.S. wireless markets.
The new company, including GTE Wireless, plans to invest more than $3 billion in its nationwide network in 2000. This capital
investment, one of the largest ever announced in the industry, will further expand the digital footprint and increase capacity for
wireless voice and data services provided to the new company's more than 24 million customers. Planned network
enhancements, technology trials and new services include:
* Introduction of the nation's first wireless two-way short messaging
service
* Testing of third generation network technology through field trials
* Rapid expansion of its CDMA digital network
* Wireless network support for General Motors' OnStar personal calling
feature
* Deployment of Over-the-Air provisioning via its CDMA digital network
According to Richard Lynch, executive vice president and chief technical officer of Verizon Wireless, the new company plans
to leverage its scale and maximize the value of its $3 billion investment in volume network equipment purchases to accelerate
the rapid deployment of CDMA service and to lay the groundwork for third generation (3G) services.
``Continued investment in our CDMA network will enable Verizon Wireless to extend CDMA digital voice and data services
to areas in the footprint where they aren't available today,' said Lynch. ``In addition, this investment will allow the company to
quickly introduce new services including two-way short messaging capabilities. In June, we are scheduled to begin testing the
next generation of wireless technology through field trials with our infrastructure vendors. In these trials, we will demonstrate
data access speeds of 144 kbps.'
New Services and Revenue Opportunities
In collaboration with infrastructure vendors Lucent Technologies and Nortel Networks, Verizon Wireless will be the first
wireless carrier in the country to offer nationwide two-way short messaging service (SMS). Initially, the service will be
delivered using Kyocera and Motorola handsets. The service introduction is planned for the third quarter of 2000. Advanced
two-way messaging enables mobile users to send text messages to other compatible mobile handsets or other Internet users.
Messages can even be sent while the subscriber is on a voice or data call. Subscribers have the ability to either compose their
own messages using the keypad or to select a standard message that is stored in their handset. Other features associated with
two-way SMS include Delivery Confirmation indicating that a message has been received and User Acknowledgement which
allows the subscriber to respond to common inquiries (i.e. Press 1 for Yes and Press 2 for No). The new service will extend
mobile communications to more interactive applications that benefit from two-way messaging, such as ``email-on-the-run' to
keep in close contact with friends, family and business associates.
General Motors' OnStar will be one of the first national customers to take advantage of the new company's coast-to-coast
network when OnStar extends its portfolio of market-leading, in-vehicle services this year to include a personal calling feature.
Verizon Wireless has an agreement with General Motors to provide the backbone wireless network for the personal calling
feature, which OnStar estimates will be carried by more than four million vehicles nationwide within the next three years.
Over the next few months, Verizon Wireless expects to implement plans to accelerate the deployment of Over-The-Air (OTA)
provisioning via its CDMA digital network. OTA provides for remote activation and telephone number and area code changes.
It will soon be enhanced to provide updates to the software in wireless phones, ensuring that Verizon Wireless' customers
remain on the company's preferred network as they travel. Future enhancements will allow the company to perform diagnostics
and software upgrades on wireless phones.
Comprehensive Suite of Data Services
Verizon Wireless offers easy-to-use wireless access to the Internet via its CDMA digital network. Featuring Web-enabled
digital wireless phones that have built-in modems, Verizon Wireless customers can surf the Web, send and receive e-mail, get
real-time stock market analysis and quotes, and set up customized personal Web pages. Delivered over Verizon Wireless'
network, customers also gain menu-driven wireless connectivity to Web-based content providers on demand, such as on-line
travel information and reservations, real-time airline flight status reports, and door-to-door travel directions.
In addition to CDMA data, Verizon Wireless offers one of the nation's largest Cellular Digital Packet Data networks (CDPD).
CDPD offers Internet access at data speeds of up to 19.2 kbps and is often the preferred choice for heavy wireless Internet
users who require an ``always on' connection. Delivered via laptops, handheld PDAs and Window CE devices, CDPD is ideal
for a variety of applications, including wireless credit card verification and automated teller machines, and remote meter reading.
Digital Migration
After GTE Wireless assets join the new company, Verizon Wireless' digital wireless network covers more than 75% of the
company's potential customer base. At the same time, Verizon Wireless continues to operate the largest, most ubiquitous
analog wireless network in the country. This dual-network advantage allows Verizon Wireless to migrate subscribers to the
company's CDMA digital network quickly and at the same time provide existing and new customers with superior analog
coverage in parts of the country where competing national carriers have yet to build out their networks.
``CDMA has proven itself as the best, most spectrally-efficient digital service in the industry. Customers enjoy the excellent
voice quality, inherent enhanced features and the convenience of data embedded in the basic service. Plus, the technology
offers a clear and cost-effective path to 3G technologies,' said Lynch. ``Network quality has been and will remain our number
one focus, and to this end, we will build aggressively until CDMA digital voice and data reach every part of our footprint.'
Network Is the Product
In 1999, the companies that will make up Verizon Wireless won prestigious customer satisfaction awards in Boston, Chicago,
Houston, Los Angeles, New York, San Diego, Seattle and St. Louis. Lynch expects this list of cities to grow in 2000 as
Verizon Wireless executes its aggressive network plan and customers begin to reap the benefits of its premier service.
``Our new company's name, Verizon Wireless, comes from two roots -- the Latin 'veritas,' which means truth, and also
connotes certainty and reliability; and 'horizon,' which signifies the possibilities ahead,' said Lynch. ``Verizon Wireless' plans to
build its reputation and legacy upon unparalleled network engineering combined with cutting-edge technology, which will enable
it to deliver superior wireless voice and data services that can be accessed virtually anywhere in the country.'
In separate press releases today, Verizon Wireless also announced the following:
* A new marketing and branding effort in support of the Verizon Wireless
launch;
* The introduction of new, nationwide flat-rate SingleRate pricing plans
for consumers and businesses, as well as a series of wireless
data-related initiatives;
* New appointments to Verizon Wireless leadership and an overview of the
senior management team.
The press releases can be found on Verizon Wireless' web site (http://www.verizonwireless/mediacenter). All were issued over
PR Newswire this morning.
About Verizon Wireless
Verizon Wireless is the largest wireless communications provider in the U.S. with over 16 million wireless voice and data
customers and nearly 4 million paging customers. The new coast-to-coast wireless provider was formed by the combination of
the U.S. wireless businesses of Bell Atlantic Corp. and Vodafone AirTouch Plc. The new company includes the assets from
Bell Atlantic Mobile, AirTouch Cellular, PrimeCo Personal Communications and AirTouch Paging.
Verizon Wireless will be further strengthened by the addition of the U.S. wireless assets of GTE Corp. when it completes its
merger with Bell Atlantic. When the merger is complete, the new company will have a footprint covering nearly 90% of the
U.S. population, 49 of the top 50 and 96 of the top 100 U.S. markets.
Verizon Wireless, headquartered in New York City and Bedminster, NJ, is 30,000 employees strong.
SOURCE: Verizon Wireless |
