Tim, Sometimes, I have a hard time understanding why HLIT doesn't work with systems like these, or do they? I would think some of their repeaters or other pieces would fit into these systems.
Regards,
Mark
Intermedia Signs Multi-Million Dollar Fiber Optic Backbone Letter of Intent with Williams
Provides Transport at Reduced Cost for Integrated Services
TAMPA, Fla.--(BUSINESS WIRE)--Jan. 5, 1998--Intermedia Communications (Nasdaq/NM: ICIX - news) today announced that it has signed a letter of intent to enter into a long term purchase agreement with Williams, for transmission capacity that will utilize approximately 14,000 route miles of Williams' existing and planned nationwide network. The Company reported that the capacity to be purchased will substantially reduce its unit cost for interexchange transport and enable the cost effective delivery of multimedia services (voice, data, Internet, video) over a single network with dramatically improved bandwidth efficiencies and reliability. The proposed arrangement would provide Intermedia with a 20 year indefeasible right of use (IRU) for the capacity, as well as access to various Williams sites for collocation of Intermedia telecommunications equipment. The $260 million approximate value of the transaction is based on the present value of the minimum monthly charges that would be payable to Williams.
The proposed agreement would provide interexchange capacity on SONET systems at rates up to OC-48 (2.488 billion bits per second), expandable with wave division multiplexing to OC-192 and beyond as Intermedia's demands increase. These systems will create 10 self-healing SONET rings throughout the nation, resulting in maximum reliability. This capacity, combined with that already controlled by the Company, will provide transport for Intermedia's emerging fully integrated end-to-end voice/data/video network services. Intermedia has already established itself as a leader in the commercial delivery of highly efficient voice and data services integrated over a single network fabric with its recently introduced Single-T(sm) Service, combining voice and Internet/data access over a single T-1 circuit.
''The proposed agreement should accelerate our network reach and capacity, with one of the nation's best providers, and underscores our fundamental position of using capital efficiently to control strategic network capacity in order to deliver innovative products to our customers,'' commented David C. Ruberg, Intermedia's chairman, president, and chief executive officer. ''We have been planning and assembling a family of services that offer all the benefits of traditional telephony, combined with the latest in data communications, integrated to operate over our cell and packet switched data network. Our arrangement with Williams should accelerate this deployment.''
The Company announced that its nationwide ATM network, key for the delivery of the integrated services, will be expanded from 22 major nodes operating at OC-3 to 35 nodes operating at up to OC-48, utilizing capacity from the proposed Williams agreement. This expansion is expected to be completed during the first half of 1998. The company expects that the integrated voice and data services to be delivered over this ATM network will be three to four times as cost effective as similar services offered over circuit-switched networks using conventional technology.
''We continue to build up our network to anticipate the level of customer demand. This agreement will assist us in satisfying those demands,'' added Robert Rouse, Intermedia's executive vice president of engineering, operations, and information systems. ''With the rapid growth of our local exchange services, our recently announced acquisitions of DIGEX, Shared Technologies Fairchild (pending) and LDS Communications (pending) and this highly flexible arrangement for the purchase of backbone capacity, Intermedia expects to have both the critical mass of multimedia traffic and the infrastructure to support it. We are leading the transformation of telecommunications services from separate voice and data networks onto a single, highly efficient packet and cell switched network, utilizing a single protocol.''
''We believe that this proposed agreement demonstrates Williams' ability to partner with customers like Intermedia, satisfying their stringent, dynamic network requirements by offering state of the art technologies and services'' said Howard Janzen, president and chief executive officer of Williams' communications group. ''Our 11,000 route mile system, growing to 18,000 by year end, dovetails nicely with the growth plans that Intermedia shared with us.''
The letter of intent is not a binding agreement. Intermedia's purchase of the capacity and services described in the letter of intent is predicated upon the negotiation and execution of a definitive agreement. The companies expect that such a definitive agreement will be completed by the end of January 1998.
Statements contained in this news release regarding expected financial results and other planned events are forward-looking statements, subject to uncertainties and risks, including, but not limited to, the demand for Intermedia's services, and the ability of the Company to successfully implement its strategies, including negotiation and implementation of the agreement with Williams, each of which may be impacted, among other things, by economic, competitive, or regulatory conditions. These and other applicable risks are summarized under the caption ''Risk Factors'' in the Company's Form 10-K Annual Report for its fiscal year ended December 31, 1996, and are updated periodically through the filing of registration statements and reports with the Securities and Exchange Commission.
Intermedia Communications is one of the nation's fastest growing telecommunications companies, providing integrated telecommunications solutions to business and government customers. These solutions include voice and data, local and long distance, and advanced network access services in major U.S. markets. Intermedia's enhanced data portfolio, including frame relay networking, ATM, and a full range of business Internet connectivity and web hosting services, offers seamless end-to-end service virtually anywhere in the world.
Intermedia is headquartered in Tampa with sales offices in over 40 cities. Intermedia can be found on the World Wide Web at intermedia.com.
Williams (NYSE: WMB - news), through its subsidiaries, is the nation's largest-volume transporter of natural gas and provides a full range of traditional and leading-edge energy and communications services. Its communications enterprises include nationwide single-source business communications systems integration; international video satellite and fiber-optic transmission; multipoint video- and audio-conferencing, satellite business applications; enhanced fax services; interactive technical training, on-demand distance learning and Internet and telemarketing services. Company information is available at wilcom.com and twc.com.
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Contact:
Intermedia
Raymond G. Bermond, 813/829-2332
or
Chris Brown, 813/829-2408
or
Williams
Gil Broyles, 918/588-4740
gil.broyles@wilcom.com |
