Exhibit 99.1
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FOR IMMEDIATE RELEASE Contact: Becky Haight
Investor Relations
Pathnet
877 227-5600
investor@pathnet.net
Kye Presley-Dowd
Media Relations
Pathnet
202 295-3286
kpresleydowd@pathnet.net
PATHNET TO BROADEN CURRENT WIRELESS STRATEGY
Expansion to Integrated Network Strategy Incorporates Fiber
in Response to Growing Demand on Selected Routes
Washington, DC, February 3, 1999 - Pathnet, Inc., a privately-held "carrier's
carrier" of digital telecommunications capacity to under-served and second- and
third-tier markets, today announced expansion of its business strategy to
include construction and deployment of digital networks utilizing both wireless
and fiber-optic technologies. Pathnet's integrated strategy represents a logical
broadening of earlier business plans relying primarily upon the development of
wireless networks. The company's decision to accelerate the incorporation of
fiber-optic facilities into existing plans for a nationwide digital network was
driven in significant part by strong demand from potential customers for
high-bandwidth facilities in under-served markets. Going forward, Pathnet plans
to construct and deploy fiber facilities on selected routes and integrate those
routes with its existing and future wireless facilities.
Pathnet has become a leading wholesale provider of high-quality, low-cost
digital telecommunications capacity by partnering with utility, pipeline and
railroad companies to upgrade and aggregate existing wireless infrastructure to
a state-of-the art SONET network. To date, the company has over 10,000 route
miles of network supply under contract. Pathnet's landmark strategy of
developing a low-cost digital network by upgrading, integrating and leveraging
its partners' assets, sites and rights-of-way will not change. The company's
expanded strategy will be implemented in the same way, and any decision to
deploy fiber facilities will be based on both anticipated customer demand and
the availability of rights-of-way as part of a partnering arrangement.
(more)
"Our decision to expand the scope of our existing business strategy is
driven by two major factors; demand and opportunity," said Dick Jalkut,
Pathnet president and chief executive officer. "First, in marketing our
services to other carriers we have encountered growing demand for
high-bandwidth facilities that our wireless network is not equipped to
handle. Second, we continue to receive a growing number of proposals, from
both current and prospective partners, expressing interest in jointly
developing fiber-optic networks along their rights-of-way. We're very
pleased that our expanded strategy will enable us to capitalize on the
clear opportunity to match strong demand with economical supply," he added.
The additional capacity on selected routes resulting from deployment of
Pathnet's integrated network will enable long-distance carriers, Internet
service providers, cellular and PCS providers and local service providers,
including the Regional Bell Operating Companies to deliver advanced services to
areas that are currently under-served by digital networks. It will also enable
these carriers to aggregate traffic from cities in second- and third-tier
markets.
As of December 31, 1998, Pathnet had 2,000 route miles of completed network, an
additional 5,000 route miles of network under construction and 10,000 route
miles of network under contract. Pathnet provides commercial telecommunications
service to inter-exchange carriers, local exchange carriers, Internet service
providers, Regional Bell Operating Companies, cellular operators and resellers.
The company is a "carriers' carrier" providing high capacity, wireless and fiber
bandwidth to under-served and second- and third-tier markets. Pathnet's strategy
is to build low-cost telecommunications networks through partnering
arrangements. The company's headquarters are located in Washington, D.C., at
1015 31st Street, N.W., Washington, D.C., 20007. For additional information
about Pathnet, visit the company Web site at www.pathnet.net.
This press release contains some matters that are forward-looking statements.
The reader is cautioned that these forward-looking statements, such as plans to
sign additional agreements with private network operators; offer services to
telecom service providers; enter into partnering arrangements; build a digital
network; and statements regarding the development of Pathnet's business, and
other statements contained herein regarding matters that are not historical
facts, are only predictions. No assurance can be given that the future results
will be achieved; actual events may differ materially as a result of risks
facing Pathnet. For a discussion of factors that could affect the
forward-looking statements, see Pathnet's public filings on file with the
Securities and Exchange Commission.
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