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To: Stephen B. Temple who wrote (1644)10/28/1998 8:10:00 AM
From: Stephen B. Temple  Respond to of 3178
 
OT>> Cheaper Cell Phone Service on Way

October 28, 1998

SPRINGFIELD, VA. - The Associated Press via
NewsEdge Corporation : Teligent Inc., a
start-up telephone company run by a former
AT&T Corp. president, began doing business
Tuesday in 10 major U.S. markets.

Chef Executive Officer Alex Mandl, who left
AT&T in 1996, said the company offers
desktop phone service using microwave
technology that bypasses local wire-based
networks.

''It is the culmination of a lot of work,''
Mandl said in a telephone interview.

The small and mid-sized businesses that
Teligent is targeting will be billed at a flat
monthly fee about 30 percent less than they
had been paying regional Bell systems, he
said. The company is not offering service to
residential customers.

The wireless network can also handle much
more data, allowing customers to run the
Internet about 100 times faster, he said.

The system uses 12-inch antenna discs on
top of buildings that beam microwave signals
to base stations within a 30-mile radius.
From the base stations, signals are bounced
back to a local receiver or relayed along fiber
optic lines, he said.

Chief Operating Officer Kirby ''Buddy'' Pickle
called it a hybrid network that takes
advantage of fiber optic lines while avoiding
the slower copper wires that comprise the
bulk of local lines.

Teligent, based in the Washington suburb of
Vienna, will limit itself to customers it can
serve with its own equipment, rather than
reselling service on Bell system lines.

''It's a much lower cost structure and
allows us to keep control,'' Mandl said.
''We're not bound by the complexities and
limitations of the Bell network.''

Teligent began sales Tuesday for networks
set up in New York, Los Angeles, Chicago,
Houston, Dallas-Fort Worth, San Antonio,
Austin, Denver, Tampa and Washington, D.C.
It will expand to five more markets by the
end of the year and at least 20 next year,
Mandl said.

The company owns licenses issued by the
Federal Communications Commission that
allow it to operate in 74 markets, potentially
reaching about half of the 54 million business
lines in the United States. More licenses will
be purchased as they become available.

[Copyright 1998, Associated Press