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

To: slurper who wrote (9651)	12/17/1998 5:00:00 PM
From: George Mc Geary	Respond to of 12468

Dow Jones Wire Story: Williams, WinStar Agree To Link Fiber-Optic, Wireless Networks Dow Jones Online News, Thursday, December 17, 1998 at 16:39 NEW YORK -(Dow Jones)- Williams Communications Inc. Thursday said it agreed to link its fiber-optic network to Winstar Communications Inc.'s wireless network. Meanwhile, shares of Winstar got a boost after the start-up phone services provider launched its wireless network in the Washington, D.C. area and said it expects the service to be available nationally within the next 12 months. Late Thursday, Winstar (WCII) was up $2.4375, or 6.6%, to $37 on volume of around three million shares, double the daily average, before the Nasdaq Stock Market stepped in to halt trading around 2:45 p.m. EST. Williams Communications, a unit of energy company Williams Cos. (WMB), said it will pay $400 million for 2% of the long-term capacity on Winstar's network. In turn, WinStar will pay $640 million for some of Williams's nationwide fiber-optic backbone assets. Winstar offers wireless transmission of telecom and data services over antennas placed on rooftops. Williams announced plans in July to build a national fiber-optic network "backbone" alongside its natural-gas pipelines by the end of 2000 to offer wholesale capacity to Internet and phone companies. Williams said the deal with Winstar 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. Winstar on Thursday launched a service known as oint-to-multipoint - which delivers telecom and data services over antennas placed on rooftops - in Washington, D.C. The technology will complement Winstar's so-called point-to-point technology already operating in several major markets. Where point-to-point requires a set of antennas for each building, the newer service allows Winstar to serve multiple buildings from a single hub. That enables the company to cut costs and increase its capacity to trasmit data, Winstar said. Winstar is racing against Teligent Inc. (TGNT), which is rapidly building its own wireless network. Many observers expect increasing demand for the technology, which delivers local telephone service using wireless technology that essentially bounces microwaves from satellite dish to satellite dish. The companies use similar technology, but WinStar is farther along in completing its business plan. Winstar recently received a major endorsement when it announced a $2 billion vendor financing agreement with Lucent Technologies Inc. (LU). That put to rest concerns about funding the rollout of Winstar's wireless network. The agreement, which will allow Lucent to provide network design, integration and buildout services for Winstar, was praised by analysts on a variety of levels. Foremost, they said it provides Winstar with badly needed cash to ensure the build-out of its fixed wireless network. Winstar is one of a handful of upstart local phone-service companies that hope to steal business away from the Baby Bells and other established local carriers. CLECs have been hot properties on Wall Street, but many have posted losses as they expand their networks. Winstar hopes to expand its reach to 100 top markets across the globe. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.