DENVER and McLEAN, VA - June 15, 1998 - Qwest and Internet service provider, CAIS Internet - a CGX Communications Company - today announced a ten-year, $100 million agreement where Qwest will provide CAIS leased and routed IP bandwidth on the 18, 449-mile domestic Qwest Macro Capacity Fiber Network. This agreement expands CAIS?s nationwide Internet network from five to approximately 130 cities, helping facilitate CAIS?s rollout of its OverVoice technology to hotels and apartment buildings across the nation.
?Qwest?s IP-based Macro Capacity Fiber Network delivers to ISPs the quality of service, speed and reliability they demand,? said Joseph P. Nacchio, president and CEO of Qwest. ?We are pleased to be working with CAIS Internet in providing capacity for delivery of state-of-the-art data, multimedia and voice services to its customers.?
Introduced last June, OverVoice technology is the first to adapt the Ethernet standard used for personal computer Local Area Networks (LANs). OverVoice permits existing telephone wiring to simultaneously carry voice traffic and high-speed Internet access, providing consumers with continuous, split-second access to the Internet at speeds of up to 10 megabits per second while simultaneously making and receiving calls. In March, CAIS and CGX conducted a nationwide field trial with Microsoft and ATCOM/INFO to provide high-speed Internet access using OverVoice technology in hotels.
?We expect OverVoice deployment to grow exponentially over the next 8-12 months as a result of agreements with Microsoft, ATCOM/INFO, OnePoint Communications, and marketing and sales efforts with other organizations,? said Ulysses G. Auger II, CEO of CGX Communications, CAIS Internet?s parent company.
CAIS Internet, acquired by CGX Communications in May 1996, is one of the original first-tier Intersands of business, government, and residential customers, and provides underlying Internet access to more than 50 ISPs in the U.S. and abroad, and ultimately to more than 500,000 "e United States, Europe, Asia, Africa, and South America. CAIS Internet has a coast-to-coast ATM (Asynchronous Transfer Mode) Internet network backbone with connectivity at speeds that range from 45 Mbps to 100 Mbps. CAIS Internet headquarters are located in McLean, Virginia, which is also where MAE-East, the world?s first commercial Internet Network Access Point, is located.
This release may contain forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by Qwest with the SEC, specifically the most recent reports on Form 10-Q, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule, volatility of stock price, financial risk management and future growth subject to risks.
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