Thursday February 18, 1:32 pm Eastern Time
Company Press Release
SOURCE: Northern Telecom Limited
Touch America to enter wireless communications business; selects Nortel Networks broadband equipment for LMDS buildout
BUTTE, Montana, Feb. 18 /PRNewswire/ - Touch America, the telecommunications subsidiary of The Montana Power Company (NYSE:MTP - news) of Butte, announced today it will provide a high-speed, broadband, wireless communications network directly linking large data customers in 30 cities to Touch America's rapidly expanding 10,000-mile fiber optic network.
Touch America also said it will use broadband wireless equipment from Nortel Networks (NYSE:NT/TSE:NTL) to help with its local multi-point distribution service (LMDS) license buildout.
''Through this new communications effort Touch America will be able to offer low-cost, fast, and secure voice, data and video transmission services and Internet access to its world-wide telecommunications network,'' said Mike Meldahl, executive vice president and chief operating officer of MPC's Telecommunications Division, which includes Touch America.
''Touch America and Nortel Networks have a three-year equipment supply agreement for some of the network's requirements,'' Meldahl said, adding Tetragenics, an automation and electronic control manufacturing subsidiary of Montana Power, will perform the engineering and installation of the new system.
''With state-of-the-art broadband wireless access technology, and using asynchronous transfer mode (ATM) switching equipment for handling a multitude of instantaneous data transfer tasks plus system integration applications, we can provide very competitive telecommunications service alternatives, even where wireline infrastructure already exists,'' Meldahl said. ''We're delighted to have Nortel Networks' Reunion equipment and expertise to help us move forward.''
''Touch America is choosing Nortel Networks' Reunion broadband wireless equipment to provide services based on Internet Protocol (IP) and ATM technologies that together enable Touch America to offer voice and data applications business subscribers cannot economically get any other way,'' said Doug Smith, chief operating officer, broadband wireless access, Nortel Networks.
The LMDS wireless buildout will begin in March in Billings and Helena. The licenses cover each city's business trade area (BTA), or regional commercial reach. From there the buildout will progress systematically, but Meldahl did not name or elaborate on service to other cities for competitive reasons.
''Touch America's expansion into the 'wireless local loop' business with the deployment of LMDS technology will provide a competitive communications alternative for customers,'' Meldahl said. ''Large data users will have a diverse and price-competitive voice, data and video path for their telecommunications' needs. This re-affirms Montana Power and Touch America's belief that customers should be the ultimate beneficiaries of competition.''
Touch America's first LMDS customer is the Billings (Montana) Public Schools, which selected the company after a competitive bid process for a wide area data network, linking nine school buildings.
Touch America acquired its 24 broadband LMDS licenses (which cover the 30 cities) at federal auction in 1998. According to Meldahl, the greater the bandwidth the more information a system can carry. ''Narrow bandwidth usually is associated with voice only transmission capabilities,'' he said.
The LMDS licenses owned by Touch America cover significant portions of the inland Pacific Northwest, Northern and Central Rocky Mountain regions, and Northern Plains states from Wenatchee, Washington, east to St. Cloud, Minnesota, and from the Montana-Canadian border south to Fort Collins, Colorado and Provo, Utah. The BTAs range in size from nearly 50,000 people to more than 600,000 people.
About Touch America
Touch America is a wholly-owned telecommunications subsidiary of The Montana Power Company, providing long distance services, private line services, Internet, and business telephone equipment since 1983. The company's digital fiber optic network employs the most advanced telecommunications technology available today. Touch America offers a full line of long distance services, as well as dedicated voice, data, video services and frame relay solutions. Touch America's equipment services include design, installation, and maintenance of PBX and key systems. The company also offers construction management oversight of the installation of fiber optic systems. Touch America and The Montana Power Company are based in Butte, MT. Information about Touch America can be found at (http://www.mtpower.com/).
About Nortel Networks
Nortel Networks delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities. Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide. Visit Nortel Networks' website at www.nortelnetworks.com. |
