Wireless: AirTouch Announces Successful Test of Emerging Wireless Technologies; Modesto Trial Demonstrates Competitive Multi-Vendor Approach to Wireless Network Design - AirTouch Communications - Company Business and Marketing

Cambridge Telcom Report, May 31, 1999

AirTouch Communications, Inc., a leading provider of wireless services, has successfully completed an advanced development program to test new, more cost-effective elements for wireless networks.

The test, conducted in Modesto, California, was part of AirTouch's ongoing strategic effort to increase competition in the domestic wireless equipment market.

Cellular and PCS service providers traditionally purchase vertically integrated systems from large infrastructure manufacturers. The AirTouch project took a different approach. Rather than trying to assemble an entire network from one large vendor, the effort focused on improving interoperability between a variety of competitive wireless equipment suppliers.

"The program has exceeded our expectations," said Brent Bettencourt, Director of Strategic Technology at AirTouch Communications. Besides giving promising new technologies an important field trial, he said, the program is promoting further cost reduction in the wireless equipment industry. "We are lowering entry barriers for emerging, best-of-breed suppliers by requiring that systems be interoperable."

The project was directed by AirTouch Vice President and Chief Scientist, Dr. William Lee. Among the lead technology companies involved in the testing were Hyundai Electronics and Samsung Telecommunications America, Inc., which provided miniature wireless base stations. Hyundai Electronics and Samsung are providers of complete cellular and PCS systems. Network switching capability was provided by Tecore, Inc. and TELOS Engineering Ltd.. Tecore and TELOS have emerged from the computer telephony industry and were chosen for their ability to connect with many different radio base station manufacturers.

Other critical participants in the Modesto test included Fujant Inc., and Celletra Ltd. Fujant, a start-up company in Carpinteria, California, has developed an impressive new radio amplifier technology. Celletra Ltd., of Israel, develops and manufactures an integrated tower-top active antenna system that enhances the performance of compact cellular and PCS base stations.

While testing in Modesto was completed in the PCS frequency bands, AirTouch expects multi-vendor wireless systems to be available at cellular frequencies as well.

AirTouch Communications is the largest wireless company in the world based on the 44 million customers served by its global ventures. AirTouch has 19 million proportionate customers based on its ownership share in cellular, paging, and personal communications services in the United States, Belgium, Egypt, Germany, India, Italy, Japan, Poland, Portugal, Romania, South Korea, Spain, and Sweden. AirTouch also has an interest in the Globalstar satellite system. On January 15, 1999, AirTouch and Vodafone Group Plc announced a definitive agreement to merge. If consummated, the transaction would result in the creation of a global wireless company with more than 29 million customers in 23 countries. FMI: www.airtouch.com.