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To: djane who wrote (3476)3/17/1999 5:07:00 PM
From: djane  Read Replies (1) | Respond to of 29987
 
Vodafone Announces Funding Plans to Facilitate Merger With AirTouch

Business Wire - March 16, 1999 15:43

BERKSHIRE, England--(BUSINESS WIRE)--March 16,
1999--Vodafone Group Plc announces today that the eleven banks which
were approached on 1 March 1999 have agreed to underwrite and arrange
the facility required to finance the merger with AirTouch Communications,
Inc. The facility documentation is expected to be signed in early April.

The eleven banks are Bank of America, Barclays, Banque Nationale de
Paris, Citibank, Deutsche Bank, Goldman Sachs, HSBC, ING Barings,
National Australia Bank, NatWest and West LB. The bookrunners are
Bank of America, Barclays, Citibank and Goldman Sachs and the facility
agent is NatWest.

As anticipated, the facility required has been reduced to $13 billion and may
be set closer to $10 billion when any necessary re balancing between the
stock and cash consideration for the merger is finalised. The
sub-underwriting stage to co-arrangers is expected to take place in early
summer, after Vodafone Group Plc and AirTouch Communications, Inc.
shareholders have approved the merger and the facility size is finally
established.


The term of the major part of the facility is for 364 days with the balance
multi-year. Pricing of the facility will be determined by the credit ratings of
the enlarged group (which should be available prior to completion of the
merger), the facility tranche selected, utilisation levels and guarantee
structure. The initial drawn margin is expected to be 60-70 basis points over
LIBOR, depending on these factors.

Following completion of the merger, a substantial part of the facility will be
refinanced in the bond and commercial paper markets through banks who
have arranged and co-arranged the facility. A euro market medium term
note programme and a US domestic commercial paper programme are
being organised and these will be activated after completion of the merger,
when dealers for these programmes will be appointed.

CONTACT: Vodafone Group Plc, Berkshire
Ken Hydon, Financial Director, 01635 33251



To: djane who wrote (3476)3/17/1999 5:28:00 PM
From: djane  Respond to of 29987
 
LATimes. Get Ready for a New Breed of of Equipment. Products are combining features of mobile phones and PCs, making data connections as commonplace as voice

latimes.com


Monday, March 15, 1999

SPECIAL REPORT: WIRELESS COMMUNICATIONS
By KAREN KAPLAN, Times Staff Writer

ome people are so attached to the Internet
that it's difficult for them to leave it behind
when they leave their desks.
Soon they may not have to.
A new class of devices that combine the
features of mobile phones and portable computers
promises to make wireless data connections as
commonplace as cell phone conversations.
"Smart" phones will be used to answer
electronic mail messages in addition to voice calls.
Palmtop PCs and personal digital assistants
(PDAs) will be able to read Web pages as easily
as computerized schedules and to-do lists. Other
products are being developed to fill niches in
between.
These devices' wireless data connections won't
be restricted to the Internet. Mobile professionals
will be able to dial into their corporate networks
from the road, and traveling salespeople can use
the gadgets to check inventory back at the
warehouse. Some enthusiasts will subscribe to
private services that use wireless networks to
transmit stock quotes, sports scores, weather
reports and even horoscopes.
But industry analysts, executives and engineers
agree that the Internet--especially e-mail--is driving
the cross-pollination of phones and computers.
"The Internet is the killer app for wireless data," said David
Christopher, the product manager in charge of the forthcoming Palm VII
hybrid at 3Com's Palm Computing unit.
By 2002, nearly 12.6 million U.S. consumers--including 1.3 million
Californians--will be spending more than $5 billion to connect devices
such as the Palm VII to invisible phone networks, according to
Telecompetition, a market research firm in San Ramon, Calif. That's four
times the number of people who used wireless data networks last year,
according to the firm.
Why such rapid growth? Plenty of players have an interest in
propelling this fledgling industry.
For wireless phone companies, the new breed of products means
more minutes of network use and therefore more revenue. Consumer
electronics makers will create more devices to sell, and software
companies will write code to run them. Other firms are springing up to
supply content for the gadgets.
And for consumers, the blending of mobile phones and PCs means
it's easier to stay in constant contact with their data.
"It doesn't matter if you're a business person or an average
consumer--everyone's mobile," said General Magic Chief Executive
Steve Markman, whose Sunnyvale, Calif., company makes virtual
assistant software. "They've all got to be able to get access to key
information and messages wherever they are."
The big question is what kind of device they will use to retrieve those
messages. Few envision all-in-one offerings--like the Nokia 9000
Communicator--becoming popular because they are seen as too bulky
and expensive.
"You just wind up compromising tons of functionality when you try to
build it into one device," said Warren Allen, senior product planner for
Toshiba in Irvine, one of five companies developing a wireless data
standard called Bluetooth. "You get all sorts of users saying, 'I wish they
had saved me $100 by leaving out this thing that I'm never going to use.'
"
Nokia says plenty of its customers are willing to carry a bigger
device with a full keyboard that can perform many of the functions of a
mobile office, including faxing, e-mail and scheduling. Technological
improvements will allow the company to produce a smaller, lighter
Communicator without giving up any functionality, said Haroon Alvi,
director of business development for Nokia Mobile Phones in Irving,
Texas.
But others, such as Andy Seybold, chairman of the Portable
computer and Communications Assn. in Boulder Creek, Calif., insist
that combination devices tend not to be as popular with consumers as
application-specific products.
"The only combination device the American public has bought in
great numbers is the clock radio," Seybold said.
Instead, the market will be dominated by data-centric
communicators that have some voice capabilities and voice-centric
smart phones that have some data capabilities, said Alasdair Manson,
director of evangelism for Symbian, a London-based joint venture of
mobile phone giants Ericsson, Motorola and Nokia and portable PC
maker Psion.
On the communicator side, the most widely anticipated product is
3Com's Palm VII. The device, currently in field trials, will combine the
functions of a standard Palm hand-held organizer with a wireless
connection for Web and intranet access and two-way messaging. The
product is expected to launch later this year with a price tag of less than
$800, Christopher said.
Meanwhile, computer features have been creeping into mobile
phones since wireless carriers switched on their digital networks. Soon
those features will turn phones into portable Internet terminals.
San Diego-based Qualcomm has licensed the Palm software and will
incorporate into its pdQ smart phone, due out by summer. Nextel and
Motorola are teaming up with Silicon Valley software firms Netscape
and Unwired Planet to make Internet-ready phones as well.
Start-ups are jumping in too. IGS, a San Diego company founded by
Qualcomm alumnus William Son, developed NeoPoint, a 6-ounce
mobile phone with an enlarged screen for text messages and
voice-activated Web surfing. The phone can dock with a PC to upload
or download phone numbers and other data. NeoPoint phones will be
available later this year for $299, Son said.
Since the hybrid devices are starting to resemble computers, it's no
surprise that Microsoft is targeting the market. Its Windows CE
operating system is already used in some hand-held PCs, and the
company founded Wireless Knowledge in San Diego with Qualcomm to
create software specifically for the new class of products.
Plenty of others, including Symbian and Unwired Planet, are creating
their own software in an effort to prevent Microsoft from extending its
dominance into wireless data. The Bluetooth consortium is even
developing a new hardware and software system that would allow
portable computers and PDAs to link to wireless phone networks via
radio connections to cellular phones.
Over the next five years, mobile data devices will become lighter and
faster, with bigger screens and longer-lasting batteries, analysts and
executives said. Some, like NeoPoint, will also incorporate smart agent
technology.
"It knows it's your significant other's birthday, it knows he likes John
Grisham, and it knows a new Grisham book just came out," said Son,
describing a typical scenario. "It will know there are 10 copies at Barnes
& Noble, and it will give you directions to get there."
The core technology for the hybrid devices is already here, said
Mark Desautels, managing director of the Wireless Data Forum in
Washington.
"Much of it sounds futuristic when in fact it's already being done,"
Desautels said. "There aren't many applications you can think of that
today's equipment can't do."
* * *
Times staff writer Karen Kaplan can be reached via e-mail at
karen.kaplan@latimes.com.

* * *

Coming Un-Wired
Mobile phones and portable computers are merging into a wireless
data market that analysts project will top $5 billion by 2002, according
to market research firm Telecompetition. This growing segment of the
total wireless market is expected to see its customer base quadruple
between 1998 and 2002. More than one in 10 wireless data customers
are expected to come from California. Number of people subscribing to
a wireless data service, in thousands:
Region: Los Angeles/O.C./Ventura/Riverside/San bernardino
1998: 157
1999: 233
2000: 325
2001: 457
2002: 639
Region: San Francisco/Oakliand/San Jose
1998: 81
1999: 120
2000: 167
2001: 235
2002: 329
Region: San Diego
1998: 26
1999: 39
2000: 54
2001: 75
2002: 106
Region: California
1998: 328
1999: 487
2000: 678
2001: 953
2002: 1,334
Region: Total U.S.
1998: 3,100
1999: 4,600
2000: 6,400
2001: 9,000
2002: 12,590
* * *
Source: Telecompetition Inc.

Copyright 1999 Los Angeles Times. All Rights Reserved

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To: djane who wrote (3476)3/17/1999 5:36:00 PM
From: djane  Read Replies (3) | Respond to of 29987
 
LATimes. 'Prepaid' Idea Is Catching On in U.S. Market. Carriers and users welcome the debit plans, but the packages don't yet compare with those offered in Europe

latimes.com

Monday, March 15, 1999

SPECIAL REPORT: WIRELESS COMMUNICATIONS

By ELIZABETH DOUGLASS, Times Staff Writer


repaid phone service, already popular
among long-distance callers, has become
one of the fastest-growing services among U.S.
mobile phone users.
Using the model of long-distance debit cards,
the wireless service allows customers to buy a
phone and pay in advance for a set amount of
usage, or minutes. This allows users and businesses
to avoid the hassles of credit checks or service
contracts.
"The nice thing about prepaid is that there are
no strings attached at all, and that's been a huge
attraction for people," said Mark Newman, editor
of the Global Mobile trade newsletter based in
London. "It used to be that if you gave someone a
mobile phone as a gift, you've given them the
privilege of having 12 monthly bills."
Wireless carriers in the U.S., eager to land new
customers as competition heats up, have embraced
the concept.
With the prepaid option, carriers can afford to
adopt a more egalitarian approach to selling service. The companies
can, in effect, welcome the "huddled masses" of wireless: infrequent
users, youth and immigrants without established credit records, the
budget-conscious or people with poor credit histories.
Carriers typically offer service only through monthly plans, a process
that often involves a credit rating review. As a result, nearly half of all
potential wireless customers in urban markets are rejected, according to
Ken Hyers, a wireless industry analyst at Cahners In-Stat Group of
Newton, Mass.
That approach was fine when carriers were focused on heavy mobile
users and business customers. But that market has become fairly
well-served--and highly competitive--so companies can no longer afford
to throw away potential customers so quickly.
For now, most U.S. carriers seem to view prepaid as a niche
market. But it is much more than that in Europe, where wireless use far
outpaces that of the U.S.
Throughout Europe, three out of four new mobile users last year
picked a prepaid plan in the fourth quarter, said Newman, who is also
an analyst for Baskerville Communications Corp.
"In Europe, it has become the most compelling way to sell to
consumers, and it's taken everyone by surprise," Newman said. "They're
scooping up customers who have fancied a mobile phone but were
worried about the cost, and people who used to be mobile phone users
and got fed up with it."
* * *
European carriers collected nearly $7 billion in prepaid wireless
revenues last year, compared with an estimated $990 million in the
United States, according to figures from Baskerville. However, the U.S.
figure is expected to nearly quadruple--to $3.7 billion--by the end of
2000, according to Baskerville.
Still, U.S. acceptance of prepaid services faces hurdles. One is
pricing. Most U.S. carriers sell prepaid services at per-minute rates that
are much higher than those available through monthly plans. The price
gap for European carriers, by contrast, is much smaller, with per-minute
prices averaging 30 cents.
"For the consumer, who is seeing everybody getting these deals for
10 cents a minute, they're sitting there saying, 'Wait a minute, I'm paying
35 cents, 45 cents, 75 cents or even $1 per minute,' " Hyers said.
That price penalty is evident in plans offered by Los Angeles-area
carriers, including AirTouch Cellular and AT&T Wireless (formerly L.A.
Cellular). Sprint PCS and Pacific Bell Wireless do not sell prepaid
packages in this area.
* * *
AirTouch, for example, sells prepaid wireless cards that include
prices ranging from 50 cents to 75 cents per minute for local calls. Rates
for prepaid packages sold by AT&T Wireless are 55 cents per minute.
In addition, restrictions may be placed on prepaid services.
Depending on the carrier and the plan, prepaid customers may find they
can't make long-distance calls or place calls from outside their home
service territory.

And prepaid cards often have an expiration date. Unused
minutes--although already paid for--could be forfeited unless the user
adds more money to the account before the expiration date. Some
companies impose a fee to reinstate a lapsed account.
Finally, the selection of phones may be limited and the service
provided could be analog instead of the digital service that includes such
features as voice mail or call waiting.

Copyright 1999 Los Angeles Times. All Rights Reserved