Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (8607)	12/18/1998 2:58:00 AM
From: revbill	Read Replies (2) \| Respond to of 18016

hi pat fwiw, richard woo was on newsworld nbn and said they have upgraded nn to a buy, target $50 cdn (about $32.50 U.S.). i think he has been negative on nnc in the past. greg

To: pat mudge who wrote (8607)	12/18/1998 8:33:00 AM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Sorry Pat, I forgot to post the press release. WinStar to expand, forges pact with Williams By Jessica Hall NEW YORK, Dec 17 (Reuters) - Upstart telecommunications company WinStar Communications Inc. (Nasdaq:WCII - news) on Thursday forged an agreement to swap capacity on its network with Williams Communications Inc. and announced plans to double the reach of its domestic network and expand internationally. New York-based WinStar provides phone service, Internet access and high-speed data services using radio spectrum instead of traditional copper phone wires or fiber optic networks. Under the agreement with Williams Communications, a unit of energy company Williams Cos Inc. (NYSE:WMB - news), WinStar will pay $640 million for a portion of Williams' national, fiber optic network. In exchange, Williams will buy 2 percent of the long-term capacity of WinStar's fixed wireless network for $400 million. The agreement will allow WinStar to own a piece of Williams' national network, instead of having to lease those long-distance assets at higher rates. Williams, meanwhile, will use WinStar's local wireless network to connect long-distance traffic directly to residences and businesses. ''What this does is link up with what we each do best. What WinStar does best is getting the local, last-mile access in place and what we do best is the long-haul business. Now, we can each take advantage of each other's expertise but still keep doing what we do best,'' Williams Communications Chief Executive Howard Janzen said in a phone interview. The Williams agreement will generate an expected $400 million to $450 million in additional revenue, as well as $350 million to $400 million in additional EBITDA, or earnings before interest, taxes, depreciation and amortization, for WinStar over the life of the agreement, WinStar said. The expected incremental cash flow to WinStar will be about $400 million over the next five years. Trading shares of WinStar's stock was halted just before the Williams pact was announced. Before the halt, WinStar's stock hit an intraday high of $37.69, but settled slightly to $37, up $2.44, on the Nasdaq. Shares of Williams added 94 cents to $29.875 on the New York Stock Exchange. Separately, WinStar said it planned to double the reach of its U.S. network to 60 major markets from 30 over the next two years and move into 50 major international markets within five years. To handle the accelerated network-building plans, WinStar said it would rely on the resources and expertise of Lucent Technologies Inc. (NYSE:LU - news) under their $2 billion alliance. Lucent in October agreed to provide WinStar with equipment, software, support and financing. The expansion will require an estimated EBITDA investment of $350 million to $400 million over a three-year period. The fourth quarter of 1998 will include $25-$35 million of this investment. At an meeting with Wall Street analysts and investors, WinStar also said it deployed in Washington an advanced wireless technology, called point-to-multipoint, that allows it to transmit service to a many more buildings than its existing point-to-point service. Point-to-point technology requires a set of antennas for each building WinStar serves. The new multipoint technology allows it to serve many buildings from a single transmission site. WinStar will expand this multipoint capability nationwide in 1999, which will lower its cost and allow it to serve far more customers in each markets. WinStar also said it has obtained access rights to more than 4,200 commercial buildings nationwide, exceeding its 1998 goal, and it expects to obtain rights to about 8,000 building nationwide by the end of 1999. These rights enable WinStar to provide a building's tenants with local and long-distance service, Internet access and high-speed data services. (( Jessica Hall, New York newsroom 212-859-1729 More Quotes and News: Lucent Technologies Inc (NYSE:LU - news) The Williams Companies Inc (NYSE:WMB - news) Winstar Communications Inc (Nasdaq:WCII - news) Related News Categories: US Market News Help Copyright © 1998 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?