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

To: gauguin who wrote (9626)	12/17/1998 3:27:00 PM
From: MangoBoy	Read Replies (1) \| Respond to of 12468

[Winstar and Williams Communications Announce Major Agreements] Williams Communications Signs $400 Million Deal to Obtain Wireless FiberSM Capacity Representing Two Percent of WinStar's Broadband Network WinStar Signs $640 Million Deal to Obtain National Network Capacity From Williams NEW YORK--(BUSINESS WIRE)--Dec. 17, 1998--WINSTAR COMMUNICATIONS, INC. and WILLIAMS COMMUNICATIONS, INC., a subsidiary of WILLIAMS announced two major agreements today to optimize the value of their respective telecommunications networks. Williams Communications President and Chief Executive Officer, Howard E. Janzen, and WinStar Chairman and Chief Executive Officer, William J. Rouhana, Jr., announced the agreements at a WinStar meeting for analysts and investors in New York City. Under the agreements, Williams Communications will obtain two percent of the long-term capacity of WinStar's expanding fixed wireless broadband network for $400 million. WinStar will obtain nationwide dark fiber backbone assets from Williams Communications for $640 million. Williams will make pro rata payments to WinStar over four years as WinStar completes its hub construction obligations under the agreement, which are based on WinStar's already planned network expansion. WinStar will make payments to Williams over seven years. These agreements call for WinStar to construct a total of 270 hubs by the end of 2001. Approximately 60 of these hubs, which are already constructed, will be made available to Williams immediately. Williams, which will complete a 32,000 route mile network in 2000, will provide approximately 60,000 fiber miles, consisting of four strands of fiber over approximately 15,000 route miles, to WinStar, together with other network-related items, which WinStar had previously obtained at a higher cost. Prior to the lighting of the fiber, Williams will also provide all of WinStar's long-haul transport requirements. Williams will remain WinStar's preferred network provider on an ongoing basis. The agreements will enable the companies, which have complementary strategies, to operate optimal end-to-end broadband networks combining the inherent cost advantages of broadband fixed wireless to provide local services, with Williams Communications' award winning multiservice network being used for long haul transport. WinStar, which has pioneered the use of Wireless FiberSM technology to provide broadband communications services, currently operates in 30 major markets across the U.S., and plans to expand to 60 by 2000, focusing on selling to business customers. Williams Communications has deployed market leading broadband products and services targeted exclusively to wholesale customers. This unique specialization is a critical component in the evolution of the domestic carrier marketplace. The agreements give each company the opportunity to serve a radically larger addressable market with a full suite of broadband telecommunications, information and Internet services and applications. Howard E. Janzen, President and CEO of Williams, said, "We believe the agreement allows Willams Communications to expand the significant set of broadband products it offers as part of its unique wholesale focus. WinStar's proven ability to provide wireless T-1's, together with Williams' technologically advanced fiber-optic network, offers Williams' carrier customers an unmatched end-to-end solution." William J. Rouhana, Jr., Chairman and CEO of WinStar, said, "These transactions are a major step forward for WinStar. We are unlocking the value of our network and demonstrating its extraordinary capacity by driving increased usage of the network we are otherwise building to serve our retail customers. We will become one of few carriers to provide end-to-end broadband services for business customers nationally. The transactions will increase revenue, extend our cost advantage, improve our EBITDA and increase our cash flow."