Monday August 10, 6:00 am Eastern Time
Company Press Release
WinStar and Hughes Network Systems Enter Strategic Relationship for Nationwide Deployment of Point-to-Multipoint Broadband Fixed Wireless Networks
Second Generation Technology Lowers Network Costs and Expands Market Opportunity
NEW YORK--(BUSINESS WIRE)--Aug. 10, 1998-- WINSTAR COMMUNICATIONS, INC. (NASDAQ:WCII - news) and Hughes Network Systems (HNS, a unit of Hughes Electronics) have announced an agreement for Hughes to provide second generation point-to-multipoint equipment for nationwide deployment in WinStar's broadband fixed wireless network.
''The Hughes equipment, when deployed later this year, will provide WinStar's voice and data network with the most advanced point-to-multipoint technology available,'' said Nathan Kantor, WinStar's President and Chief Operating Officer. ''Based on our specifications and HNS' significant TDMA system experience, the new equipment will significantly increase the transmission capacity of our spectrum while reducing network deployment and operating costs.'' This agreement follows two years of collaboration between Hughes and WinStar, the nation's leading provider of broadband fixed wireless telecommunications services. WinStar, in cooperation with other equipment suppliers, successfully tested point-to-multipoint technology in Florida during 1997, and is currently operating a demonstration network in Washington, D.C. and Tysons Corner, Virginia, prior to commercial deployment in late 1998.
The Hughes second generation TDMA point-to-multipoint system improves the utilization of the company's spectrum, allowing WinStar to provide up to four full duplex DS-3 clear channel circuits of capacity per 100 MHz channel, while permitting the centralization of service provisioning, configuration management and network monitoring functions. A fully networked point-to-multipoint infrastructure offers unprecedented versatility in services provided as well as improved operational efficiency. Customers will benefit from the provision of such varied services as enhanced voice, video conferencing, native LAN-LAN interconnections, MPEG-2 video and high-speed Internet access on a single fully integrated local metropolitan area ATM transport network. Point-to-multipoint fixed wireless technology combines the benefits of end-to-end ATM transport with bandwidth on demand for high capacity bi-directional voice, data and video services.
''Point-to-multipoint technology and economics significantly expand WinStar's addressable market by enabling WinStar to cost-effectively serve customers in a much greater number of buildings.'' Kantor added, ''For the first time, the resources and features of the much-heralded information superhighway will be affordable to nearly everyone, at speeds in excess of 200 megabits per second. Such speeds have previously been associated only with high-capacity, high-cost private corporate data networks.''
''WinStar's real world experience providing wireless broadband communications services to customers, coupled with Hughes' wireless networking systems expertise, provide a unique combination to create a world-class broadband system solution,'' said Pradeep Kaul, Executive Vice President at HNS. ''HNS is excited about the opportunity and the potential it creates for leading the industry into a new paradigm for delivery of broadband services.''
The Hughes equipment is compatible with all of Winstar's existing point-to-point and point-to-multi-point equipment and continues Winstar's strategy of using multiple vendors. It will be incorporated into WinStar's existing demonstration network in Washington, D.C. by November of this year.
WinStar Communications, Inc. is a national local communications company serving business customers, long-distance carriers, fiber-based competitive access providers, mobile communications companies, local telephone companies and other customers with broadband local communications needs. The company provides its Wireless Fiber(SM) services using its licenses in the 28 and 38 GHz spectrum. The company also provides long distance and information services. Headquartered near Washington, DC, with international sales and support offices worldwide, Hughes Network Systems (www.hns.com) is a leading provider of wireless, satellite and enterprise network solutions. HNS is a unit of Hughes Electronics Corporation. The earnings of Hughes Electronics are used to calculate the earnings per share to GMH (NYSE symbol) common stock.
Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties which are described in the company's SEC reports, including the 10-K for the period ended December 31, 1997, and the 10-Q for the period ended March 31, 1998.
WinStar is a registered trademark, and Wireless Fiber is a service mark of WinStar Communications, Inc. WinStar-Hughes Enter Strategic Relationship .
Source : biz.yahoo.com
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