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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: DreamWeaver who wrote (9414)	11/24/1998 9:51:00 AM
From: TheSlowLane	Respond to of 12468

CNET story on new breed of bandwidth wholesalers: Telco newcomers look for pot of gold By Corey Grice Staff Writer, CNET News.com November 24, 1998, 4 a.m. PT URL: news.com A new breed of telecommunications companies is banking on an unquenchable thirst for bandwidth to drive sales, but some analysts wonder whether these companies are just speeding toward a short-term pot of gold. Qwest Communications International recently announced plans to expand into Europe while Williams Communications has decided to float a public stock offering to fuel its network expansion--two moves aimed at improving the reach of the two emerging carriers, while simultaneously making them more attractive buyout targets. Some experts speculate it's only a matter of time before the industry consolidates--much like the Net's portal players--as baby Bells swallow smaller carrier players as needed. Carriers such as Qwest or Williams--in addition to Level 3 Communications and IXC Communications--could be the dominant telco of the future. These companies rely on new fiber optic, IP-based networks to transmit voice and data traffic at far lower prices than traditional circuit-based schemes. But only if that's what they intend to do; especially since many of the leaders in the industry have a history of selling off their networks to larger companies. Expanding Their Reach Last week, Qwest announced a $700 million joint venture with Dutch telecommunications company KPN to expand service to Europe. In another ambitious play, natural gas pipeline company Williams said it will spin off its Williams Communications telecom business in an initial public offering. The IPO, expected to be filed with the Securities and Exchange Commission during the second quarter of 1999, would help raise money to fund the capital-intensive job of building a national network. But Williams Communications, backed by the monetary muscle of its natural resource-oriented parent, would seem to be on more solid financial footing than some of the other emerging carriers. Built to Sell? Some of the industry leaders have a history of selling off their networks. Level 3 Communications' chief executive Jim Crowe sold his MFS network to WorldCom in 1996. Now he's frantically building a new network with plans to complete it within four to six years. Likewise, Williams' WilTel communications unit once operated 11,000 miles of fiber, playing in the wholesale data market in the late 1980s and early 1990s. The company then sold the bulk of the capacity to WorldCom in 1995. A three-year non-compete clause expired in January and now Williams--and it's soon-to-be-public communications business--are building out 32,000 miles of fiber. More than 18,000 miles will be completed by the end of the year, according to the company. Some analysts have pegged Qwest as a prime takeover target, pointing to the company's shiny new network--the envy of many telecommunications companies--along with an accompanying lack of name recognition in the consumer market. Owning capacity in both the United States and Europe makes Qwest more attractive to larger long distance and local phone companies, analysts said. "It's a necessary evil to expand internationally but I think it's with the idea of being taken over," said Philip Wohl, a telecommunications analyst at S&P Equity Group. "That's what they're doing here." Wohl sees a larger telecommunications company acquiring Qwest as a technology purchase, as a means to access a fiber-optic IP-based infrastructure. The company said it is only doing what it needs to do to expand. "We're about building shareholder value," said Jack McMaster, a senior vice president at Qwest. "And that means we need to take the lead in Europe as well." Other analysts don't know what to believe. "If someone's going to come in and pay a ridiculous amount I'm sure some of those companies would jump at it," Langner said. Williams maintains it is committed to being the "carrier's carrier" by offering other companies access to state-of-the art network capacity on a wholesale basis. "We don't build networks solely with the plan to sell them," said Williams spokesman Gil Broyles. "This is not to be construed as the first step in an exit strategy." Still some say there is not much difference anymore. "It's very hard to tell an exit strategy from a long-term stay in strategy," Koppman said. "The best strategy for selling out is probably also the best strategy for running a good business." Falling Prices But analysts said a pricing squeeze will lead to competitive pressures once the various networks have been completed. "If you stay in the wholesale business, eventually you'll get pushed up against the wall," said Mark Langner, an analyst at investment bank Hambrecht & Quist. "The bandwidth guys will all get played against each other for lower prices." "I think some of these companies will be around long term and some of them will be acquired," said Steve Koppman, a senior analyst at market researcher Dataquest. "The question is whether there will be enough demand to justify all the bandwidth that is being created. It seems like there's going to be such a glut of capacity." Analysts said the emerging carriers might have to spend millions on marketing and promotions in order to grab significant market share away from the entrenched telecommunications companies. "They may be able to take a few customers, but AT&T is huge; it's pretty hard to crack that," Koppman said ========================================================= I liked this part: "analysts said a pricing squeeze will lead to competitive pressures once the various networks have been completed" Seems to me that the companies listed are not last-mile companies and as such, competition between them will work to WinStar's favor, creating lower costs for the long-haul backbone portion of the network.

To: DreamWeaver who wrote (9414)	11/24/1998 9:59:00 AM
From: TheSlowLane	Read Replies (1) \| Respond to of 12468

Put it on the mantle...right next to the other ones... Winstar Wins Financial Times Global Telecoms Award for Most Innovative Broadband Development Strategy Business Wire - November 24, 1998 09:38 NEW YORK--(BUSINESS WIRE)--Nov. 24, 1998-- Fixed Wireless Provider Recognized for Designing Reliable, High Capacity Network To Meet Business Demand for Broadband Services WinStar's Targeted Marketing Campaign also Wins Global Telecoms Award WINSTAR COMMUNICATIONS, INC. (NASDAQ: WCII) last night received the 1998 Financial Times Global Telecoms Award for the most innovative broadband development strategy. WinStar, the nation's leading fixed wireless broadband communications provider, was honored for deploying a flexible, reliable broadband network capable of meeting the telecommunications, Internet and data needs of businesses throughout the U.S. WinStar also shared the 1998 Global Telecoms Award for the industry's most effective marketing campaign during an awards ceremony at New York's Roosevelt Hotel. The Financial Times Global Telecoms Awards recognize and honor innovation and excellence in the global telecommunications industry. The 1998 awards encompass suppliers, operators and service providers, and recognize such aspects as the development and application of new technology, the creation of new services that both increase competitiveness and benefit the end user, and the successful marketing of companies and their products and services. An international panel of telecommunications experts, policymakers, end-users and journalists judged the Global Telecoms Awards nominees. The award for most innovative broadband development strategy honors WinStar's fixed wireless broadband network, which uses Wireless FiberSM to deliver local and long distance phone service, Internet access and a wide range of advanced information services to business customers with 99.999% reliability. William J. Rouhana, Jr., Chairman and Chief Executive Officer of WinStar, said, "We are honored to receive the Financial Times Global Telecoms Awards for the industry's most innovative broadband development strategy and most effective marketing campaign. The Financial Times award in recognition of our broadband strategy underscores what our growing customer base already knows -- WinStar's fixed wireless broadband network represents the best, most cost effective alternative for businesses seeking advanced communications and information services." WinStar also won the Global Telecoms Award for most effective marketing campaign. The award honors WinStar's innovative "lead generation" campaign, a building-specific premium gift campaign launched in 1997 to generate sales leads among business decision-makers. The campaign, which involved the delivery of a tasty breakfast to potential prospects in targeted WinStar buildings, promoted WinStar's cost-effective service as "food for thought" and "something to chew on." To date, this campaign has generated more than 4,200 meetings between prospective customers and WinStar account executives. Mr. Rouhana added, "I'm also pleased that WinStar's successful marketing efforts earned a 1998 Global Telecoms award. This award acknowledges the effectiveness of our precisely targeted, building centric marketing approach, which has won WinStar more than 12,000 customers to date. WinStar's building-by-building marketing strategy is unique in the CLEC industry, and has enabled us to grow our business at a record rate." By the end of next year, WinStar plans to be in 40 top U.S. markets, and has the resources to expand to 50 U.S. markets and up to 50 international markets. The carrier focuses on attracting business customers, and recently launched Project Millennium, a breakthrough marketing campaign offering free local phone service until the year 2000 to first-time customers in 1,000 newly-connected buildings in 13 major U.S. markets. Earlier this year, WinStar entered into a $2 billion strategic relationship with Lucent Technologies to expand the buildout of its broadband network. WinStar Communications, Inc. is a facilities-based national local communications company, serving business customers in major markets throughout the U.S. The company provides local and long distance phone service and high-speed data, Internet access and information services. WinStar provides these Wireless FiberSM services over its own network, using its licenses in the 28 and 38 GHz spectrum. 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 WinStar's SEC reports, including the 10-K for the period ended December 31, 1997 and the 10-Q for the period ended September 30, 1998. WinStar is a registered trademark, and Wireless Fiber is a service mark of WinStar Communications, Inc. CONTACT: WinStar Communications, Inc. Press: Gary Holmes/Eric Andrus (212) 584-4021 or Financial Community: Daniel Briggs Director, Capital Market Relations (212) 584-4032