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Motorola and First Florida Communications Team Up to Target 'Last Mile' Market
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--May 19, 1999--Mr. Douglas Costa, esq., CEO of First Florida Communications, Inc., (OTC BB:FFCI) announced today that Motorola has signed a contract with American Wireless, a wireless cable TV owner and operator and subsidiary of First Florida Communications, Inc. to install infrastructure and provide technical support to customers in St. George, Utah. The signing of this contract signifies Motorola's entrance into the emerging Local Multipoint Distribution System (LMDS) market.
LMDS is a wireless communications solution designed to provide local exchange carriers with an alternative for circumventing 'information bottlenecks.' Because more businesses are requiring more access to the Internet and on-line services, bottlenecks are appearing in the 'last mile,' between the local loop and the high capacity backbone. These bottlenecks are blamed for creating many of the traffic jams on the information superhighway.
Motorola's 'last mile' solution is to construct an antenna site, equipped with an 18-inch dish connected with fiber to a high capacity backbone or PSTN. Information and voice is then sent and received via radio waves to and from the customer's antenna site located on their building, where it is connected directly to their local network. Customers can access the Internet, place local or long distance phone calls, videoconference, or transfer information at speeds up to 30Mbps, all with fiber-like quality of service. In addition, repeater antenna sites can be installed to reach customers that reside in outlying areas.
According to a 1998 study conducted by Pioneer Consulting, the LMDS business-consumer market will grow from $241 million in 1999 to $1.2 billion by 2001 and to $2.3 billion by 2003.
"Local exchange carriers must begin offering timely and cost-effective alternative solutions to meet the growing demand for the Internet and other on-line broadband services," says Rickie Currens, Corporate Vice President and General Manager of Motorola's Ground Systems Division.
American Wireless will be among the first companies to extend their reach to businesses requiring broadband services by offering an economical, fiber-like, high-speed network solution. "LMDS is the leading edge technology that gives American Wireless a significant competitive advantage in the broadband market. It will help enable us to take our place as a leader in the industry, to build a compliment of services that will answer the needs of the data driven society," says Mical Terry, President of American Wireless.
More than ever, companies are wrestling with the cost and time it takes to run fiber or high-capacity wire from the backbone to their businesses, while incumbent exchange carriers are struggling with how to get large amounts of information from one point to another through existing infrastructure. At a minimum cost of $20,000 per mile domestically, and up to $1,000,000 per mile internationally, running fiber can be very expensive. In densely populated cities, if existing conduits are used to run fiber, installation is expedited. However, as more businesses are trying to save money by constructing their offices in outlying areas, the time it takes to plant fiber and wire remains tediously slow. Since LMDS is a wireless solution, and by reusing existing technologies, such as cable modems, Motorola can deploy LMDS faster and at a lower cost, which in turn will benefit American Wireless and their customers.
In addition to cost and time, customers are also demanding convergence. Most companies have dedicated lines for voice, as well as higher-capacity lines dedicated to videoconferencing, or information services, like the Internet. Motorola's strategy is to create a single solution that allows all voice, data and multimedia applications to travel through the same equipment, while remaining invisible to the end user. This allows the service provider to gain the upper hand in managing compatibility, reducing costs and eliminating the need for multiple carriers.
Motorola is a global leader in providing integrated communications solutions and embedded electronic solutions.
Sales in 1998 were $29.4 billion.
American Wireless Inc. d.b.a. Sky-View Technologies, is a diversified media and communications company, which provides digital wireless television to Washington County area of southern Utah. American Wireless is a subsidiary of First Florida Communications, Inc. (OTC BB:FFCI), a multi-dimensional, integrated broadcast and communications company that focuses on new opportunities created by and increasing demand and convergence of high speed data technologies.
FFCI has completed its certified audit and have completed S&P filing and expect to apply to become listed on the Nasdaq small-cap market within the next few days.
Information contained in this press release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. There is no assurance the above-described transaction will be completed. There can be no assurance of the ability of the company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future. The above and additional factors are discussed in detail in the Company's filings with the S.E.C.
Note to Editors: The NASD has neither approved nor disapproved of the contents of this press release.
CONTACT: First Florida Communications, Inc.
Douglas Costa, 954/252-9577
or
Chris Boutchie, 954/351-9070
or
Cyber Financial Services
Investor Relations, 416/367-0181
Fax: 416/367-5350 |
