Williams Communications Completes $220 Million Transaction to Provide Axient Communications With Nationwide Internet Backbone - Company Business and Marketing

Cambridge Telcom Report, Jan 31, 2000

The network unit of Williams Communications, a leading international provider of telecommunications services and products for the carrier marketplace, has signed a $220 million, 20-year agreement to be the core provider of a robust nationwide Internet content network for Axient Communications, Inc.

Under the agreement, Williams Communications will provide and manage dedicated capacity on Williams' nationwide fiber-optic network to link Axient to more than 100 locations throughout the United States. Williams will also provide Axient with optional frame relay, asynchronous transfer mode (ATM), and other network services where required.

Williams Communications has also invested $10 million in Axient Communications through the purchase of Series B preferred stock.

"This agreement underscores Williams Communications' unique ability to provide carriers and Internet providers with the national infrastructure, leading-edge technology and comprehensive network services they need to enable their success," said Howard E. Janzen, president and chief executive officer of Williams Communications. "We are providing Axient a best-in-class network that gives them unparalleled reach throughout the country. Williams' equity investment in Axient demonstrates our confidence in its team, vision and strategy, and exemplifies the long-term, strategic relationship between our companies."

"Williams has the right combination of network, technology, and service professionals for fast-moving companies in the Internet industry," said Michael Gordon, chief executive officer of Axient Communications.

Axient is also outsourcing the initial installation and implementation of its network to Williams. Williams will build and operate a network control center for Axient in St. Louis, providing around-the-clock network monitoring and maintenance services. This network control center will give Axient access to a wide range of network management services and real-time information about its portion of The Williams Multi-Service Broadband Network(TM).

"We have extensive experience in building and supporting carrier networks, so it makes sense for Axient to have us handle the day-to-day network operations and monitoring," said Frank Semple, president of the Williams Network. "By taking advantage of Williams' expertise in building and managing networks, Axient can execute its aggressive network build plan in record time."

Tulsa-based Williams will initially build out 35 cities on Axient's network by the end of the first quarter, with complete deployment to more than 100 cities by the end of the year.

Williams Communications' next-generation long-distance network, the fourth largest in the United States, has 26,000 route miles of fiber in the ground and is scheduled to total 33,000 route miles connecting 125 cities by the end of 2000. The fully integrated architecture of the Williams Multi-Service Broadband Network(TM) couples ATM core switching with advanced optical networking technologies to provide carriers with data, voice, video and Internet services over any platform. 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 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.

Axient Communications, headquartered in Phoenix, is building a next- generation Internet content network that will launch Spring 2000.