WinStar Announces Deployment Plans for Point-to-Multipoint Technology - WinStar Communications - Company Business and Marketing

Cambridge Telcom Report, Oct 11, 1999

WINSTAR COMMUNICATIONS, INC. has announced its plans for the commercial rollout of its point-to-multipoint (PMP) service. As part of an accelerated deployment plan: -- WinStar will integrate PMP technology into its network in key U.S. markets during the fourth quarter, including Washington, DC, Phoenix, Oakland, San Jose, Seattle and Salt Lake City.

-- WinStar has deployed PMP technology in Amsterdam and will deploy it shortly in other international markets.

-- WinStar has signed an agreement with Siemens Information and Communication Networks, Inc., which has teamed with P-Com, Inc.

(NASDAQ: PCMS) to manufacture, deploy and install PMP equipment for WinStar. It is anticipated that purchases under the agreement could reach as much as $400 million over the next five years. WinStar has also issued a purchase order to Hughes Network Systems for PMP equipment and related services. This purchase order is part of a previously announced agreement that WinStar entered into with Hughes in August 1998.

-- Lucent has agreed to include these purchases under the $2 billion financing agreement, which was established between WinStar and Lucent in October 1998.

"By implementing point-to-multipoint technology, WinStar is able to reduce the capital costs associated with providing services to buildings on our network," said David Ackerman, executive vice president of WinStar's network services group. "The broader geographic coverage provided by PMP technology allows us to cover more buildings, thereby putting more customers on-net, which increases our gross margins. The combination of our multiple PMP suppliers, our detailed deployment plans and the use of Lucent financing puts us in a position to aggressively roll out our PMP network across the country."

For the past four years, WinStar has been working with Hughes and Siemens, leading manufacturers and systems integrators, to develop PMP technology. As a result, WinStar will realize significant benefits from this deployment. PMP technology will not only reduce network deployment costs and allow for more efficient use of spectrum, but it will also allow WinStar to serve more buildings from each local hub site. Customers will benefit by reduced costs and the ability to receive bandwidth on-demand, which will allow them to receive a wide range of communications services - from voice and videoconferencing to high-speed data and Internet - on a "pay-per-use" basis.

WinStar Communications, Inc. is a pioneer in providing business customers with broadband communications services, including local and long distance phone service, as well as high-speed Internet access, data and information services. WinStar provides these Wireless Fiber services in more than 30 U.S. markets over its own local broadband networks, using its licenses in the 28 and 38 GHz spectrum, which are connected to the company's nationwide fiber-optic network. In addition, the company offers Wireless Fiber services in two international markets. In the past year, WinStar has become one of the largest Internet companies in the U.S. Recently, the company announced a destination Web site for businesses, Office.com, a service from WinStar. Except for any historical information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are described in the company's SEC reports, including the 10-K for the period ended December 31, 1998, and the 10-Q for the period ended June 30, 1999. WinStar is a registered trademark, and Wireless Fiber and Office.com are service marks of WinStar Communications, Inc.