AT&T teams up with Philips to deliver total GSM solution

HILVERSUM, The Netherlands -- July 20, 1994 -- AT&T Network Systems International (AT&T NSI) and Philips Kommunikations Industrie AG (PKI) of Nuremberg, Germany, today announced an alliance in which PKI will supply base station systems for AT&T's GSM wireless offering. The agreement will enhance AT&T's ability to firmly establish its international presence as a provider of digital wireless communications networks based on the Global System for Mobile Communications (GSM) standard.

A completely open interface design, made possible through this agreement, will make AT&T's GSM system the most standards-compliant in the industry, according to Bill Robinson, vice president of AT&T's GSM equipment business.

"The proven base station will be combined with AT&T's 5ESS® Switch, GSM network management software and systems integration capabilities to offer European and GSM operators worldwide a total system solution," Robinson said.

PKI is the leader of the Digital Mobile Communication Systems 900 (DMCS 900) Consortium in Germany, formed together with Bosch. The consortium has deployed thousands of base stations throughout Europe and is a main manufacturer of base station systems for the Deutsche Bundespost Telekom's D1 GSM network.

"AT&T is absolutely committed to being a major player in GSM," Robinson said. "This partnership is an aggressive step toward exceeding immediate product parity with earlier GSM market entrants, while we focus on the future.

"Establishing this kind of presence in Europe-where GSM originated-gives us the opportunity to interact directly with the most experienced, knowledgeable partners and customers and allows us to offer advanced wireless systems to GSM customers all over the world. We are extremely pleased to have the opportunity to work with PKI and the DMCS consortium."

"AT&T is an ideal partner to offer complete GSM systems and we are proud of their choice," confirms Walter Preger, managing director for Philips Cellular Infrastructure Systems. "Moreover, this alliance indeed strengthens our position in the GSM market, giving us the opportunity to widen our geographical scope. We are confident that this partnership will be a great success for all parties."

The arrangement marks the establishment of an AT&T European competence center for GSM and represents AT&T's continued efforts and commitment to move operations closer to customers.

AT&T-NSI, based in Hilversum, the Netherlands, has subsidiaries in most European countries and is AT&T's European sales, research and development, manufacturing and supply company for network operators in Europe, the Middle East and Africa. It offers communication service providers virtually everything they need to build and operate their networks.

PKI is the German operating company for the Philips Communications Systems division. The company, with international responsibility for the business group Cellular Infrastructure Systems of Philips, has more than 20 years experience in the mobile communications field. The DMCS 900 base station systems are currently in operation in Germany, France, Belgium and Portugal.