Washington, D.C., August 26, 1996 - MCI today announced that it has enteredinto a wireless agreement with NextWave Telecom Inc. and unveiled itsstrategy to expand nationally its wireless communications business into therapidly growing market for personal communication s services (PCS).NextWave is positioned to become one of the nation 's largest PCS wirelessnetwork operators.
Under terms of the agreement, MCI will connect its intelligent network toNextWave's planned national PCS system, securing the ability to offer PCSservice to more than 110 million individuals in 63 markets, including 29 ofthe top 50 markets. MCI will purchase at least 10 billion minutes of PCScapacity from NextWave over 10 years, and market PCS services under the MCIbrand and integrated with its other communications services. In addition,NextWave has selected MCI to provide telecommunications and other servicessupporting the development and ongoing operations of its PCS system.
"This agreement with NextWave establishes an immediate nationwide PCSfootprint for MCI and represents an important next step in MCI's wirelessstrategy," said Whitey Bluestein, vice president, MCI wireless strategy anddevelopment. "This is the first full interconnection agreement of its kindand brings new competition to the wireless marketplace. With fullinterconnection, MCI need not own wireless facilities to offer tremendousvalue and exciting new services to our customers."
MCI said the NextWave agreement is a model for additional agreements itexpects to sign with other wireless providers as part of its WirelessInterconnected Network (WIN) strategy. The WIN initiative is MCI'sblueprint for building the nation's largest and most sophisticated wirelessfootprint through agreements with NextWave and other wireless providers.These agreements are part of MCI's strategy to offer a full range ofwireless services and features that are fully integrated into MCI's suiteof communications services. The following elements of the NextWaveagreement are consistent with MCI's WIN strategy:
- interconnection with MCI's intelligent network, ensuring that MCI can addvalue and integrate wireless services with its other communicationsproducts and deliver them in a seamless package of offerings;
- access to geographic regions and advanced wireless technologies whichsignificantly expand MCI's wireless coverage and capabilities ands value toits customers; and
- an opportunity to generate revenue through MCI's advanced, integratedtelecommunications services.
"NextWave exceeds the standards of excellence we have set for MCI's WINstrategy," said Bluestein. "MCI's agreement with NextWave is a sound modelon which to continue to build our wireless footprint and capabilities."
NextWave, based in San Diego and New York, was the winning bidder for 63licenses in the FCC's C-Block auctions. The FCC auctions set the stage forgreater wireless competition, granting wireless licenses that will expandconsumers' choice of wireless providers from two in most markets today toas many as eight. NextWave's PCS license applications are currentlypending before the FCC.
PCS is the next generation of wireless communications. PCS is based ondigital technology which offers better transmission and clearer connectionsthan other wireless offerings. PCS also enables new and more advancedwireless services, such as greater security, single-number service,integrated voice and paging, and enhanced wireless data communications.
MCI today provides cellular service to businesses and consumers in 17 topmarkets covering over one-third of the U.S. population. By the end of theyear, MCI expects to expand its cellular offering to more than 30 markets,enabling it to offer service to over 45 percent of the population. MCI isalso one of the largest providers of wireless paging services to businessesand residential users in the U.S.
MCI, headquartered in Washington, D.C., is one of the world's largest andfastest growing diversified communications companies. With annual revenueof more than $15 billion, MCI offers consumers and businesses a broadportfolio of services including long distance, wireless, local, paging,messaging, Internet, information services, outsourcing, and advanced globalcommunications.
NextWave Telecom Inc., which was founded in July 1995, is the parentcompany of NextWave Personal Communications, Inc, NextWave Wireless andTele*code Inc.NextWave PCI is the holding company for NextWave's PCS licenses and plansthrough NextWave Wireless to construct facilities, deploy PCS networkequipment, and provide wholesale PCS in conjunction with its strategicpartners. Tele*code was formed to provide Code Division MultipleAccess-based products and engineering services. NextWave Telecom is aprivately held corporation with headquarters in San Diego and New York andoffices in Washington, D.C., Boston, Dallas, Orlando, Cincinnati andPhiladelphia, and Seoul, Korea. # # #
CorporateAugust 26, 1996August 26, 1996