American TeleSource Fiber NetworkOperational; Long Distance Transport From Bestel in Service; AugustNetwork Services Volume Up 85%
September 7, 1999 09:52 AM
SAN ANTONIO--(BUSINESS WIRE)--Sept. 7, 1999--American TeleSource International Inc. AMTI ("ATSI") today announced that its newly secured network capacity of one E-3, or 16 E-1 circuits between Dallas, Texas, and Mexico City has been successfully operating for approximately eight weeks.
On June 4, 1999, ATSI reported it had secured a fiber agreement for these E-3 facilities with Bestel, S.A. de C.V. ("Bestel"), a licensed carrier in Mexico operating a 2,270-kilometer fiber optic, digital switched network.
This milestone event completes the first phase of ATSI's Asynchronous Transfer Mode (ATM) "next generation" network between the United States and Mexico. ATM is an industry-standard protocol allowing high-speed transfer of voice, video and data (Internet protocol or IP) in uniform packets for switching and routing.
Randy Poole, president of ATSI, commented, "The quality of Bestel's network has reduced ATSI's call set-up times and decreased post-dial delays, which are key to customer satisfaction and retention. As a result of the new fiber network, our August network services volume was up 85% over July.
"The increased volumes are primarily coming from upper-tier international telecommunications companies, which may result in other revenue and strategic opportunities for ATSI. This increase is timely in light of the pricing pressures the international market has experienced as a whole."
ATSI's relationship with Bestel (which began with an interconnection agreement signed in November 1998) has added diversification to ATSI's network and reduced certain network costs, resulting from Bestel's competitive rate structure. Through this arrangement, ATSI is now transporting domestic and international long distance services originating from its public pay telephones and casetas (public communications centers) located throughout Mexico.
Arthur L. Smith, ATSI's chairman and CEO, stated, "I am pleased with the quality of Bestel's network on both the fiber optic facilities and long distance transport. As a fully integrated, facilities-based telecommunications company, we believe the stage is set for ATSI to capitalize on other opportunities that have presented themselves in the Mexican marketplace.
"Because of the strong relationships we have built within our markets, we are executing on these opportunities and continuing to strengthen our framework -- key components in building solid long-term value for ATSI and its shareholders. The Bestel relationship has allowed us to secure diversity and redundancy in our network and lessened our dependence on satellite technology.
"Although no formal agreement has been signed to secure 'dark' fiber, Bestel offers sufficient transmission capacity in 'lit' fiber to support ATSI's near-term growth. We are excited about the opportunities that exist to expand our relationship."
American TeleSource International Inc. is an emerging international carrier serving certain niche markets in and between Latin America and the United States. The Company's borderless strategy includes the deployment of a "next generation" network for more efficient and cost effective service offerings of domestic and international voice and data transport. ATSI has clear advantages over the competition through its corporate framework consisting of unique licenses, interconnection and service agreements, network footprint, and extensive distribution channels. ATSI's wholly owned subsidiary, GlobalSCAPE Inc. (www.globalscape.com) is rapidly becoming a leader in electronic commerce of top Internet-based software, utilizing the Web as an integral component of its development, marketing, distribution and customer relationship strategies.
Certain statements contained herein ("As a fully integrated, facilities-based telecommunications company, we believe the stage is set for ATSI to capitalize on other opportunities that have presented themselves in the Mexican marketplace. Although no formal agreement has been signed to secure 'dark' fiber, Bestel offers sufficient transmission capacity in 'lit' fiber to support ATSI's near-term growth.") are considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased transmission facilities, damage, loss or malfunction of satellites, fiber cuts, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.
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