DCI's version of the news...
(PR Wires) DJ: DCI Elevates Status Through Alliance with IXC Communicat
DJ: DCI Elevates Status Through Alliance with IXC Communications
STRATFORD, Conn., Dec. 7 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC
Bulletin Board: DCTC) today announced an alliance with IXC Communications,
Inc. (Nasdaq: IIXC) that will elevate DCI to the status of a global carrier
and support dramatic growth in DCI Telecommunications traffic worldwide.
Under terms of the alliance, IXC will acquire a 13% ownership position in
DCI, and DCI will be granted five-year leases to utilize specified IXC
facilities to support its expanding long-distance and prepaid phone card
business.
DCI plans significant infrastructure improvements, totaling $30 million, to
further support the increased demand being experienced for its services.
They include collocation of a major switch at IXC's New York facilities, and
the installation of switches in the United Kingdom, Spain and Italy.
Under the agreement, DCI may lease E-1 lines from IXC to carry its traffic,
including one E-1 between Madrid and London and two E-1s from London to the
United States. DCI will install two new switches in Europe, one in London
and the other in Madrid. The existing switch in London will be moved to an
IXC facility in Italy and linked directly to London via DCIs dedicated E-1
connection. All of the switches will be utilized for both long-distance and
prepaid traffic.
In addition, DCI will lease several dedicated lines from IXC that will be
used to originate traffic in London and terminate in several high-volume
countries throughout Europe and the Far East. This also gives DCI the
needed capacity to ramp up traffic at a much quicker pace. This is
especially true in Italy and Spain, where the company's DCI Time Europe
joint venture has recently signed contracts to carry $340 million worth of
traffic.
Since the London switch will be linked directly to the U.S., DCI's Canadian
subsidiaries will also be able to take advantage of the direct line
connections to countries throughout the world and dramatically reduce per
minute costs. It is anticipated that the switching equipment and dedicated
lines will be in place by March 1, 1999.
According to John Fleming, president of IXC's international business, "The
arrangement with DCI is significant for both companies. For DCI, IXC's
contribution provides the network and collocation capabilities to
significantly expand its international operations. For IXC, it represents
an expanding international presence and the first time all its operating
affiliates have come together under one customer contract."
Larry Shatsoff, vice president and COO of DCI, stated that this agreement
with IXC is a significant step forward for DCI in its quest to be an
international facilities-based service provider. "We are extremely pleased
to be working so closely with a company of IXC's global stature and
appreciate IXC's confidence in DCI to provide the services and support
necessary to establish such links and services in Europe," Shatsoff said.
IXC's network-based delivery solutions are designed to address the speed and
capacity requirements of the global communications market. Having completed
the first new coast-to-coast fiber optic network in the United States in
more than a decade, IXC Communications, Inc. is at the forefront of the
industry's new class of emerging domestic and international carriers. IXC
offerings include private line, broadband, Internet and long distance
switched and dedicated services. IXC is a publicly traded company listed on
Nasdaq under the symbol IIXC. IXC's web site is at ixc-comm.com.
DCI is an international provider of telecommunications services, including
long distance, prepaid telephone cards and Internet services. It has an
extensive distribution network throughout North America, Europe and the Far
East, owns telephone switching facilities in Canada, the United Kingdom,
Spain and Denmark, and has 12 operating facilities serving customers in
eight countries. DCI recently reported revenues of $17 million for the
first six months of its current fiscal year, versus $5.8 million in the
comparable prior-year period. DCI recently announced a planned merger with
Wavetech International (Nasdaq: ITEL). This announcement signifies the end
of DCI's quiet period. DCI is a publicly traded company listed on the OTC
Bulletin Board under the symbol DCTC. DCI's web site is at
dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of 1995:
The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including but not limited to risks associated with the new
uncertainty of future financial results, additional financing requirements,
development of new products, regulatory approval processes, the impact of
competitive products or pricing, unpredictability of patent protection,
technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings with the Securities and
Exchange Commission.
/CONTACT: Craig K. Murphy, Director, Investor Relations, of DCI
Telecommunications, 203-380-0910, ext. 3108, or InvestorRelations@dcic.com/
08:30 EST
*** end of story ***
|
