Advanced TelCom Group Awards Lucent Technologies $100 Million Contract to Design, Build and Maintain New Data and Voice Network - Company Business and Marketing

Cambridge Telcom Report, August 30, 1999

Advanced TelCom Group Inc. (ATG), a facilities-based Integrated Communications Provider (ICP), has announced that it has signed a $100 million strategic agreement with Lucent Technologies (NYSE: LU) to assist in the design, building and maintenance of a new data and voice network to serve mid-sized cities across the United States.

Under the four-year agreement, Lucent will provide ATG with a set of industry-leading data networking, switching and access systems, billing management software and Lucent Technologies NetCare Professional Services. Through this powerful network, ATG will be able to offer its customers integrated, multi-service voice, data and advanced high speed Internet solutions.

"We selected Lucent Technologies as our strategic supplier because of its breadth of experience in planning, designing, building and operating complex voice and data networks," said Clifford G. Rudolph, ATG chairman and CEO. "ATG and Lucent will work closely together and draw on the most advanced research from Bell Labs, Lucent's R&D arm, to rapidly deliver state-of-the-art local and long-distance business communications and Internet services."

Rudolph said ATG plans this year to offer a broad array of voice services, plus high- speed, DSL-based services for Internet access for businesses, small office/home office users and telecommuters. ATG's initial service offering will be to eighteen mid-sized cities in California, Maryland, Nevada, Oregon, Virginia and Washington. The company plans to expand to over 100 cities across the United States in the next five years.

"We are pleased to have the opportunity to provide ATG with an end-to-end package from consultation to implementation, including maintenance and management, from our world-class Lucent Network Reliability Center (NRC)," said Bill Plunkett, Lucent vice president - emerging service providers. "We have great confidence in the senior leadership at ATG and are excited about the prospect of building a new network with high quality voice and Internet services."

The contract includes a full range of Lucent NetCare offers, including providing network design, engineering support, consulting, integration, management and maintenance services for voice, data and video. Network Operations and Control Center (NOCC) services provided by the Network Reliability Center, located in Aurora, Colorado, include network monitoring, remote maintenance and repair, plus dispatch for on-site service.

Under the agreement, Lucent will install its flagship 5ESS(TM) Digital Switch, the industry's most reliable switch capable of functioning as a gateway to convert voice signals into packets for travel over IP or ATM (or a combination of both) networks with the 7R/E(TM) Packet Driver. Lucent will provide its AnyMedia Access System, the PortMaster 4 multiservice remote access concentrator and the Caller Applications platform, offering an array of integrated voice mail and messaging services. Lucent's TrueWave RS (reduced slope) Fiber will be used in ATG's network, but will be purchased and installed by contractors for ATG in each of its markets.

Lucent will provide its Billdats Data Manager software, a comprehensive data collection, distribution and management solution, now available from its Kenan Systems subsidiary. In an earlier a separate contract, ATG purchased Kenan Systems' Arbor Wireline software solution for billing, customer care and management. In just four months, ATG has gone live with the Kenan solution, achieving significant time-to-market advantage and offering new services and special billing capabilities for its customers.

Advanced TelCom Group Inc. (ATG), headquartered in Santa Rosa, California, is a rapidly growing facilities-based Integrated Communications Provider (ICP) that focuses on the under served, middle-sized markets across the United States. Supported by the highest quality customer service via digital networks including DSL technology, ATG offers an integrated set of telecommunications products and services including local exchange, high speed data and Internet services, domestic and international long distance, and other enhanced voice services. The result is one-stop shopping which allows ATG to become "the local telephone company" of choice to its customers. For more information visit the ATG web site at http://www.callatg.com.

Lucent Technologies, headquartered in Murray Hill, N.J., designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies, visit the company's web site at http://www.lucent.com.