Companies Unveil Strategic Business Relationship Agreement
Designed to Speed Communications Technology Innovations
DENVER, April 19 /PRNewswire/ -- U S WEST (NYSE: USW) today announced a two-year strategic agreement between its telephone subsidiary and Lucent Technologies (NYSE: LU) valued at over $300 million for state-of-the-art switching telecommunications equipment, software, and professional services to enable U S WEST to offer a broader array of data and voice services to customers.
As part of the agreement, U S WEST will deploy 41 new 5ESS Digital Switches over the next two years, replacing analog central office switches and software in the network. The new technology is expected to allow U S WEST to:
-- Accommodate greater volumes of voice telephone calls as well as data
transmissions
-- Facilitate the installation of additional customers lines more quickly
and efficiently
-- Prepare for future customer services integrating voice, video, and data
over one network
The agreement provides for supplying 5ESS Switches for new central offices and accommodating growth in existing 5ESS central offices. All 14 states in U S WEST's territory are expected to benefit from the contract through additional 5ESS software upgrades and potential expansions. The amount of investment in each state will be determined based upon customer need and the business environment. The company currently has 5ESS Switches in service across its territory.
Along with its flagship 5ESS(R) Digital Switch Lucent also will supply software and Lucent Technologies NetCare professional services as part of the agreement. Lucent NetCare services include network design, engineering, installation and technical support.
"Lucent knows networks, and we have extensive experience supporting U S WEST in providing its customers the most advanced services through the 5ESS Switch platform." said Ave Elliott, Lucent regional vice president. "Lucent's 5ESS Switch, already a mainstay in U S WEST central offices, will facilitate a smooth transition from the circuit-based to packet-based networks necessary to handle the ever increasing data needs of customers."
Lucent's 5ESS Switch was the first to provide wireline and wireless, voice, video and data on the same switch platform. The switch's flexible platform offers diverse applications for Internet, ISDN, ADSL, local and long-distance services.
The contract is part of the company's plan to quickly deploy sophisticated new technology developed to more efficiently handle customers' growing demand for communications services.
In addition to the new upgrades, the two companies unveiled a strategic business relationship designed to speed communications technology innovations to U S WEST customers. The ground-breaking relationship is intended to be a "road map" for the two organizations' working relationship for delivering world-class communications products and services to U S WEST's customers.
Elliott indicated that both companies will utilize their expertise to focus on technology evolution initiatives, collaborate in the early test and evaluation of key voice and data products, shorten development times and focus on cost effectiveness.
U S WEST provides a full range of telecommunications services -- including wireline, wireless PCS, data networking, directory and information services -- to more than 25 million customers nationally and in 14 western and midwestern states.
Lucent Technologies, headquartered in Murray Hill, New Jersey, designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company.
Safe Harbor Statement: This document contains statements about expected future events that are forward-looking and subject to risks and uncertainties. For these statements, we claim the safe harbor for "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ from expectations include: (i) greater than anticipated competition from new entrants into the local exchange, intraLATA toll, wireless, data and directories markets, causing loss of customers and increased price competition; (ii) changes in demand for U S WEST's products and services, including optional custom calling features; (iii) higher than anticipated employee levels, capital expenditures and operating expenses (such as costs associated with year 2000 remediation); (iv) the loss of significant customers; (v) pending and future state and federal regulatory changes affecting the telecommunications industry, including changes that could have an impact on the competitive environment in the local exchange market; (vi) a change in economic conditions in the various markets served by U S WEST's operations; (vii) higher than anticipated start-up costs associated with new business opportunities; (viii) delays in U S WEST's ability to begin offering interLATA long-distance services; (ix) consumer acceptance of broadband services, including telephony, data and wireless services; and (x) delays in the development of anticipated technologies, or the failure of such technologies to perform according to expectations. These cautionary statements should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by U S WEST. U S WEST cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. In addition, readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "anticipates," "intends," or the like to be uncertain and forward-looking. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. U S WEST does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.)
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