AG Communication Systems and Paradyne Corporation Announce Revolutionary SuperLine Integrated Access System

Business Wire, Jan 26, 1999

WASHINGTON--(BUSINESS WIRE)--Jan. 26, 1999--

Innovative Solution Delivers Additional Voice and/or Data Lines

Over Existing Copper Wiring, Increasing Service Provider Revenues

While Dramatically Reducing Upgrade Costs and Deployment Time

AG Communication Systems today unveiled a unique telephony product developed in cooperation with Paradyne Corporation. The SuperLine(TM) Integrated Access System enables service providers to quickly and cost-effectively deliver a bundle of communications services, including up to two additional phone lines and Ethernet data, to small-office/home-office (SOHO) and residential customers over the same copper wire used today for their existing phone service. Now available, the innovative solution dramatically increases service provider revenues while radically reducing upgrade costs and deployment time.

The SuperLine solution consists of two major elements: the SuperLine Integrated Access Platform (IAP) manufactured by AG Communication Systems and the SuperLine Integrated Access Device (IAD) made by Paradyne. SuperLine will be sold primarily through Lucent Technologies sales channels.

The SuperLine IAP resides in a service provider's central office or beside a remote digital loop carrier (DLC). The SuperLine IAD - a piece of equipment similar in size to a modem - is located in a customer's home or office.

SuperLine both merges and enhances features available from DLC and digitally added main line (DAML) products with competitive pricing, performance and function. The sound quality and all the features and functionality of traditional telephone lines are preserved.

SuperLine utilizes digital links to deliver the additional phone lines from a central office switch via standards-based digital switch interfaces. SuperLine uses Tripleplay(TM) technology from Paradyne and is compatible with existing network services, including plain old telephone service (POTS), ISDN, T1 and legacy data circuits.

The market for additional phone lines is growing rapidly as residential and small business users need them for voice, fax and Internet services. Additional lines are used by telecommuters and SOHO workers for business applications, Internet users who want a separate line for their modem, or parents who want to give their children a separate phone line, for example.

With SuperLine, incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs) can cost-effectively upgrade their last mile infrastructure quickly. This enables these service providers to rapidly address the market demand for additional lines and generate new revenues without having to incur the time and expense of installing new copper wires. For ILECs with existing copper networks, SuperLine enables them to offer additional phone lines, particularly in areas where the existing copper wires have been exhausted. For CLECs, SuperLine enables them to offer multiple revenue generating lines from a single copper wire, increasing the efficiency of each unbundled line they lease or purchase.

SuperLine can reduce service providers' annual construction costs by more than 20 percent. Unlike existing solutions for digitally adding lines to an existing copper wire, service providers do not need to send technicians to each home or office to install the SuperLine IAD, significantly reducing costs and allowing them to quickly get the new phone lines into service for customers.

At the home or small office, the consumer simply plugs the SuperLine IAD into a conventional power outlet and any existing phone jack. The additional phone lines are accessed through standard modular jacks on the SuperLine IAD and support enhanced voice services such as call forwarding, caller ID, call waiting and distinctive ringing. SuperLine uses AG Communication Systems' True 56K(TM) technology to support full 56 Kbps modem speeds. A higher-speed Ethernet data option allows service providers to stimulate even higher revenues through creative marketing and service packaging.

SuperLine also addresses the threat to ILECs from cable companies for additional lines. And while the data services offered by cable modems are shared, SuperLine data transmissions are completely private and secure.

About AG Communication Systems

Phoenix-based AG Communication Systems, a subsidiary of Lucent Technologies, is a leading provider of advanced communication products and services, including switching, access, video, wireless and intelligent network products. The company's GTD-5(R) digital switching systems serve more than 17 million business, government, and residential subscribers throughout North America. Annual revenues for the fiscal year ended September 1998 were approximately $450 million. Additional information is available on the company's web site at http://www.agcs.com.

About Paradyne

Headquartered in Largo, Fla., Paradyne is a leading developer and provider of products and technologies that facilitate high-speed access to networks worldwide for communications, computing and information. Recognized as the market share leader in DSU/CSUs, Paradyne is one of the largest, privately held manufacturers of network access products. Paradyne markets its award-wining analog products, digital access products, Hotwire(TM) DSL products and an extensive array of frame relay and access multiplexers to network service providers, Internet service providers, frame relay service providers and commercial end users. For additional information, visit Paradyne's web site at http://www.paradyne.com.