AT&T Wireless Services reaches multimillion dollar deal with Ericsson and Lucent

KIRKLAND, Wash. -- May 7, 1996 -- AT&T Wireless Services Inc., a wholly owned subsidiary of AT&T (NYSE:T) announced it has reached agreements in principle on 1.9 Ghz equipment purchases valued at more than $550 million with Ericsson and Lucent Technologies to supply state-of-the art wireless communications systems across the United States, using TDMA IS-136 digital technology.

The agreements in principal represent initial configuration of network systems and call for the latest digital PCS equipment that provides a broad range of customer offerings. Today's announcement is an updated report from field trials that began in 1995. AT&T's wireless network buildout in areas where AT&T holds new PCS licenses is on schedule, with the launch of commercial service expected to begin the first quarter of 1997.

National service

In addition to the PCS licensed areas, AT&T Wireless is upgrading its existing 850 MHz cellular markets currently serving nearly 6 million customers in the United States to an IS-136 Digital PCS etwork. The upgrade is expected to be completed by first quarter of 1997. AT&T Wireless will cover 80 percent of the country and more than 200 million potential customers with the TDMA Digital PCS service.

Digital PCS will be a platform for a menu of new services:

• The ability for digital customers to roam between the 1.9 GHz PCS band and the 850 MHz cellular bands by using dual mode (analog and digital) and dual frequency (850 MHz and 1.9 GHz) telephones.
• Digital control channels to provide advanced messaging and paging services.
• Sleep mode that will greatly extend the battery life of a wireless phone, thereby improving talk time and standby time.
• Authentication to reduce telecommunications fraud.
• Encryption to enhance voice security.
• Wireless campus, building or home area calling features.
• Increased call capacity.
• Personalized communications -- one number, one person.

AT&T Wireless Services' digital cellular networks already offer features such as Caller ID, Message Waiting Indicator and, in some markets, lower operating costs under earlier versions of the technology.

Gives consumers control, flexibility and freedom

"This infrastructure puts into place technology that has been tested and proven to give people the power to not only control their personal communications, but also to custom-tailor those communications to best fit their needs. The implementation of digital PCS gives us the widest footprint of coverage in the nation," said Steve Hooper, president and chief executive officer of AT&T Wireless Services.

"We are bringing the wireless communication services of the future to market today. By choosing Ericsson and Lucent we have two proven network providers to help us implement digital PCS," said Hooper. "In our new 'PCS license areas' we have thousands of leases signed, hundreds of sites under construction and are on schedule with the radio spectrum cleared to date. We are on target to start service in 1997."

Proven technology partners

Ericsson and Lucent Technologies are currently working with AT&T Wireless to install equipment, build network systems and begin network testing in the 1.9 GHz PCS markets. Ericsson will provide equipment in AT&T Wireless' Northeast, Southeast, and Western regions, and Lucent will provide equipment in the Central and Southwest regions.

"Ericsson is looking forward to expanding our long-standing partnership with AT&T Wireless," said Jan-Anders Dalenstam, executive vice president and general manager, Ericsson Inc., Radio Systems. "We are fully committed to ensuring the success of their Digital PCS networks."

"We are delighted to be working with AT&T Wireless Services on the buildout of a nationwide network," said Joe Colson, president of Lucent Technologies' Customer Business Unit. "It's particularly significant that AT&T Wireless Services is testing an IS-136 system using Lucent Technologies' Autoplex® Series II TDMA system. This milestone is an important achievement in the advancement of wireless digital communications services."

Future of wireless technology

AT&T's Hooper continues: "This technology is a collaboration between AT&T Wireless and our equipment partners, learning from one another and learning from customers what they want, where they want it and how they want it. As technology continues to evolve, we fully expect to continue working with the best in the business to deliver world-class service and support to people around the globe. Untethered communications is where it all starts -- with family, friends, customers and business associates. This is our vision of the wireless future," said Hooper.

AT&T Wireless Services Inc. is the nation's largest provider of wireless communications, providing cellular, wireless data, aircraft communications and advanced messaging services.

Ericsson's 85,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.

Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, consumer and business telephone systems and microelectronics components. Bell Laboratories is the research and development arm for the company.

AT&T Wireless Services Cellular and PCS Markets