Denver, February 14, 2000 ? Qwest Communications International Inc. (NYSE:Q), the broadband Internet communications company, and Jato Communications Corp., a high-speed digital subscriber line (DSL) Internet access and applications company, today announced a five and one-half year agreement that provides Jato with access to Qwest?s leading nationwide network backbone and augments Qwest?s nationwide DSL coverage. Under the terms of the agreement, Qwest will receive approximately $25 million from Jato for broadband networking services. In addition, Qwest is investing $10 million in Jato, to be followed by an additional $2.5 million investment in the near future.
With access to Qwest's Internet-based network, Jato can connect its local DSL markets to offer customers office-to-office connectivity between cities. This capability expands Jato's inventory of business solutions across its national markets, especially for customers with multiple office and multiple city requirements. The agreement also enables Jato to provide its customers with Web hosting, Virtual Private Network (VPN), and Professional Services solutions from Qwest.
Through this partnership, Qwest can rapidly and cost-effectively expand its nationwide DSL service offerings into markets served by Jato that do not overlap with the QwestLink local broadband access network currently being built in 25 major metropolitan markets. QwestLink will offer business customers direct, high-speed access to the Qwest backbone through a combination of DSL services, local fiber or fixed wireless service. Qwest began providing local DSL access last year through relationships with other leading DSL service providers. By the end of this year, QwestLink networks are scheduled to be complete in 11 cities, followed by an additional 14 cities in 2001.
"The tremendous demand from business customers for direct access to our broadband Internet network through a DSL connection is driving our expansion," said Joseph P. Nacchio, Qwest chairman and CEO. "Our relationship with Jato gives us additional DSL coverage to more quickly expand our last mile connection for customers."
Jerry Dinsmore, president and CEO of Jato, said: "The investment by Qwest certainly validates our business model and having a major network player as a key strategic partner is critical to meeting our aggressive network and distribution goals."
Without access to a national backbone, DSL service providers usually require Internet access points in each of their service cities. The relationship with Qwest enables Jato to reduce the number of Internet access points required to support its national network, subsequently reducing overall operating expenses and enhancing network security. In addition, all of Jato's regional ISP partners will benefit from the ability to market their own Internet services with Jato DSL Plussm across Jato?s national footprint.
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable, scalable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 25,500 miles in North America. In addition, KPNQwest (Nasdaq: KQIP), Qwest's European joint venture with KPN, the Dutch telecommunications company, is building and will operate a high-capacity European fiber optic, Internet-based network that will span 9,150 miles when it is completed in 2001. For more information, please visit the Qwest web site at www.qwest.com.
About Jato Communications
Founded in June 1998, Denver-based Jato Communications provides high-speed Internet access, network connectivity and associated broadband applications and services to small and medium-sized businesses. Jato uses digital subscriber line (DSL) and other high-speed communications transport technologies to offer a wide array of Internet-based services including Internet access, web hosting, e-mail, and e-business applications. The company distributes its products and services directly to end-users and indirectly through Internet Service Providers (ISPs), Value Added Resellers (VARs), and other local market partners. Jato intends to offer its DSL Plus sm in 50 markets, comprised of over 145 cities, by the end of 2000. It already introduced its DSL Plus service in Denver, Boulder, Salt Lake City, San Antonio, Albuquerque and Santa Fe. For more information, call Jato at 303-226-8400 or visit the company's website at www.jato.net.
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 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 maintain rights of way, financial risk management and future growth subject to risks, Qwest's ability to achieve Year 2000 compliance, adverse changes in the regulatory or legislative environment, and failure to complete the merger with U S WEST and achieve projected synergies and financial results timely or at all. This release may include analysts' estimates and other information prepared by third parties, for which Qwest assumes no responsibility. Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The Qwest logo is a registered trademark of Qwest Communications International Inc. in the U.S. and certain other countries
Jato Communications is a registered trademark and DSL Plus is a service mark of Jato Communications Corporation.
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