GTC & Williams form alliance to create, equip & manage VoIP Network
go2net.newsalert.com
GTC Telecom & Williams Communications Form Alliance To Create, Equip and Manage Voice Over IP Network
PR Newswire - April 29, 1999 09:16
Private Network Allows GTC to Become an Industry Leader in Voice Over IP Telephony Technology
COSTA MESA, Calif., April 29 /PRNewswire/ -- GTC Telecom (OTC Bulletin Board: GTCC) today announced it has entered into a strategic alliance with Williams Communications, a unit of Williams (NYSE: WMB), as a single source for GTC's high-speed, nationwide network. The contract is expected to exceed $100 million over a five-year term.
The creation of GTC Telecom's private network makes the company one of the first to have a fully operational, nationwide, private voice over IP network. This will allow GTC customers access to toll quality long-distance service that in the past was virtually unattainable with Internet Protocol technology.
Under the agreement, Williams Communications will provide GTC a single source for dedicated bandwidth capacity,
network management services and optical equipment. The new GTC Telecom network will run on Williams Communications' nationwide fiber-optic network. Currently, Williams has 17,600 route miles in service, 20,000 miles of fiber in the ground, and plans to complete 32,000 route miles connecting 125 cities by the end of 2000.
Williams Communications will design, install, maintain and fully manage the voice over IP network for GTC Telecom,
including installation of the network hubs in major markets. It will monitor the GTC Telecom network around-the-clock from the Williams Communications Network Operations Centers in St. Louis and in Tulsa, Okla.
The voice over IP network will use the Williams Communications ATM (asynchronous transfer mode) backbone to enable GTC to take advantage of unprecedented bandwidth capabilities. The Williams Multi-Service Broadband Network(TM) architecture couples ATM core switching with advanced optical networking technologies to provide carriers with data, voice, video and Internet services over the platform they choose. Using OC-192 transport systems with Dense Wavelength Division Multiplexing, the Williams network delivers up to 160 Gbps in 16 waves on a single fiber.
Williams Communications Solutions, a unit of Williams Communications, will provide Ascend data communications
and internetworking equipment for the GTC network. Based in Houston, Williams Communications Solutions sells and services business communications equipment and integrates data, voice and multimedia networks through more than 100 offices in North America.
"This alliance with Williams Communications is a giant step in the development of GTC Telecom as a nationwide long-distance carrier. We will now become one of the first companies that will have their own nationwide voice over IP network in operation. This network will allow GTC to provide complete services in four key areas: telephone, modem, video conferencing and as a first-tier ISP," stated Paul Sandhu, president and CEO of GTC Telecom.
Sandhu continued, "What makes this network venture with Williams Communications so unique is that our alliance will allow us to create a network using voice over IP technology that will have virtually infinite expandability with respect to bandwidth capacity. The Williams network has the capacity to provide us with the infrastructure to reach our goal of 1.2 billion minutes of long distance traffic per month. We will also have a fully managed network, which means that we will have expert technical and engineering staff monitoring our network at all times."
Mark Fleming, executive vice president of GTC Telecom commented, "On the operations end, by having our own network, GTC will see a significant reduction in the cost to offer long-distance services. This gives us even greater flexibility and will translate into increased profit margins for GTC."
Fleming continued, "We believe that this alliance with Williams Communications and the development of our network will position GTC as a market leader in IP Telephony programs."
About Williams (NYSE: WMB)
Williams, through its subsidiaries, provides a full range of communications and energy services. Williams Communications owns and operates a nationwide fiber-optic network; sells, installs and maintains communications equipment, and provides other services throughout the United States and Canada. Williams information is available
at www.williams.com.
About GTC Telecom
Founded in 1997, GTC Telecom is a Telecom/Internet company, providing long distance service to small and medium sized businesses as well as residential customers throughout the United States. GTC Telecom currently offers some of the lowest long distance rates in the industry today, including a rate of 5.9 cents per minute and flat rate programs starting at $29.95 per month for 500 minutes. GTC's long distance service offerings include outbound service, inbound toll-free 800 service, and dedicated private line services for data. GTC's position as an interexchange carrier gives the company the ability to function as a large telecom company but alleviates the
overhead, thus allowing GTC to have rates lower than many of their competitors. In addition, GTC offers an array of Internet services, including wireless T1 access. The Company also offers long distance calling cards via the Internet on its site, www.ecallingcards.com. For further information visit GTC's web site at www.gtctelecom.com.
Included in this release are "forward-looking statements within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations reflected in such forward-looking statements will prove to have been correct. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of certain
factors including sales levels, distribution and competition trends and other market factors.
SOURCE GTC Telecom
/CONTACT: Lynne Butterworth of Williams Communications, 918-573-3692; or
Bruce Berman of The Michelson Group, Inc., 800-824-4012 ext. 114/
/Web site: michelsongroup.com
/Web site: williams.com
/Web site: gtctelecom.com
(WMB GTCC)
Headlines Previous Story Next Story
WMB GTCC %CPR %TLS %JVN V%PRN P%PRN
|
