Williams Communications Provides Innovative Optical Wave Service in Multi- Million Dollar Deal With Major Telecommunications Carrier - Company Business and Marketing

Cambridge Telcom Report, Jan 17, 2000

In a network capacity agreement initially valued at more than $30 million, Williams Communications Group, Inc. will provide its market-leading Optical Wave Service to a major telecommunications carrier.

As a matter of policy, the customer requested that it not be identified. The new agreement for high-capacity fiber-optic service on Williams Communications' rapidly expanding network calls for Williams to provide circuits on 12 routes. This matrix of connectivity spans the United States in support of one of the top providers of commercial Internet services.

"This is precisely the type of transaction for which the Williams Multi- Service Broadband Network was designed and built," said Howard Janzen, president and chief executive officer of Williams Communications. "This agreement speaks volumes about our ability to satisfy a sophisticated customer's needs. It is another powerful example of industry eConstruction forces at work."

Williams Communications coined the term eConstruction to describe market forces favoring companies that execute a specialist strategy focused on a targeted segment of the telecommunications value chain. This view holds that the telecommunications industry will continue to evolve from an approach in which companies are burdened with the inefficiencies of attempting full vertical integration.

Most of the capacity provided to the major telecommunications company will consist of Williams Communications' Optical Wave Service. The industry leader in bringing this innovative product to market, Williams Communications enables leasing of individual OC-48 wavelengths that provide 2.5Gbps and a transparent interface with a carrier's network. The balance of the capacity provided under the agreement consists of OC-12 private line service.

The agreement calls for provision of circuits on Williams' network between the following cities: Atlanta-Richardson, Texas; Richardson-Los Angeles; Richardson-Relay, Md.; Relay-Bloomington, Calif.; Relay-New York City; Hillsboro, Ore.-Salt Lake City; Sacramento-St. Louis; Sacramento-Hayward, Calif.; Washington D.C.-Raleigh, N.C.; Bloomington-San Diego; Boston-Hartford; and Atlanta-Miami.

Williams Communications' network unit, an international provider of telecom products and services for the carrier market, has been rapidly deploying an advanced nationwide fiber-optic network. Construction of the network is progressing a year ahead of its initial completion plan.

"Williams Communications remains the only company in our industry that is focused purely on the carrier market. As such, we are totally committed to developing and delivering the innovative products and services our carrier customers require to be successful," said Frank Semple, president of the Williams network.

Williams Communications' next-generation long-distance network, the fourth largest in the United States, is scheduled to reach 33,000 route miles connecting 125 cities by the end of this year. The fully integrated architecture of the Williams Multi-Service Broadband Network couples ATM core switching with advanced optical networking technologies to provide carriers with data, voice, video and Internet services. Williams Communications has received widespread industry recognition for its network architecture -- most recently the International Engineering Consortium's InfoVision award.

Williams Communications Group, through its subsidiaries, is North America's only exclusively carrier-focused fiber-optic network and is the largest independent source of end-to-end integrated business communications solutions -- data, voice or video. Based in Tulsa, Okla., Williams Communications has 9,000 employees primarily in North America, with offices in Europe and Asia and investments in South America and Australia. Approximately 85 percent of WCG stock is held by Williams (NYSE: WMB) which, in 1985, became the first energy company to harness its core competency as a builder of networks to enable competition in the communications industry. Additional information is available at www.williams.com and www.williamscommunications.com.