Exhibit 99.2
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FOR IMMEDIATE RELEASE
Contact:
Becky Haight
Pathnet --Investor Relations
877 227-5600
investor@pathnet.net
Kye Presley-Dowd
Pathnet -- Media Relations
202 295-3286
kpresleydowd@pathnet.net
Mary Ward
Lucent Technologies
908 582-7658 (office)
maryward@lucent.com
PATHNET SELECTS FIBER FROM LUCENT TECHNOLOGIES FOR ITS NATIONWIDE NETWORK
Washington, D.C, Wednesday, February 3, 1999 - Pathnet, Inc., a privately
held "carrier's carrier" of digital telecommunications capacity to
under-served and second- and third-tier U.S. markets, announced today that
it has selected Lucent Technologies to be the exclusive supplier of
fiber-optic cable for its nationwide, voice and data network. The agreement
is initially valued at $440 million and could grow up to $2.1 billion over
the life of the seven-year agreement. This represents potentially the
single largest fiber supply agreement to a network operator in the United
States.
Pathnet previously announced plans to expand its business strategy from the
development of wireless networks to a broader, integrated strategy
employing both wireless and fiber-optic technologies in its networks. The
Lucent supply agreement provides a broad level of support to that effort,
including fiber-optic equipment, network planning and design, technical and
marketing support, and financing. Pathnet fiber facilities will be
constructed and deployed on selected routes, and the company will integrate
those routes with its existing and future wireless facilities.
Under the agreement, Pathnet will use Lucent's TrueWave (R) RS (reduced
slope) fiber, a revolutionary new fiber for long-distance networks
developed by Bell Labs. Lucent has agreed to provide equipment financing of
approximately $400 million for the first phase of the network construction.
Lucent may provide or arrange financing for future phases of the fiber
portion of Pathnet's network, in amounts of up to $400 million for each
phase, provided Pathnet fulfills mutually agreed upon terms. The total
amount of financing over the life of this seven-year agreement is not to
exceed $1.8 billion.
"Pathnet's plan has long been to create the industry's most extensive,
low-cost network coverage to the under-served and second- and third-tier
markets for voice, data and Internet carriers," said Dick Jalkut, president
and chief executive officer of Pathnet. "Our relationship with Lucent
allows us to leverage our early wireless success while giving us the
flexibility to accelerate complimentary fiber development over the next
several years."
"We are extremely pleased to be part of Pathnet's plans for a
high-capacity, data and voice network, and we're delighted they chose our
industry-leading TrueWave fiber," said Nina Aversano, president, North
America for Lucent's Global Service Provider business. "The combination of
Lucent's expertise in designing networks, our relationships within the
industry and Pathnet's innovative approach to creating a nationwide network
gives service providers an efficient way to meet the ever-increasing demand
from their customers for more bandwidth."
Pathnet will continue to rely on its traditional approach of partnering
with railroads, pipelines, utilities and other owners of telecommunications
assets for rights-of-way throughout the United States. Pathnet expects that
by broadening its partnering arrangements to include fiber, it will be able
to offer customized networks to service providers. Through partnering,
co-development and the establishment of anchor tenants, the company expects
to minimize the costs of its retained network. Pathnet will utilize
Lucent's fiber products to deliver bandwidth services as well as dark or
dim fiber to customers requiring dedicated network services in markets that
are currently under-served. As with its wireless network, Pathnet will
serve as the network designer and project manager for the overall fiber
build-out.
Lucent Technologies has the largest combined optical fiber and fiber cable
operations in the world. TrueWave RS fiber is part of the company's award
winning TrueWave product line and represents the next-generation in fiber
optics, giving long distance providers increased capacity and a
future-proof solution for emerging high-speed Dense Wavelength Division
Multiplexing (DWDM) systems. It is manufactured in Lucent's Atlanta Works
facility.
Lucent Technologies designs, builds and delivers a wide range of public and
private networks, communications systems and software, business telephone
systems and microelectronic components. Bell Labs is the research and
development arm for the company. More information about Lucent
Technologies, headquartered in Murray Hill, N.J., is available on its Web
site at www.lucent.com.
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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.
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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,
co-development and anchor tenant arrangements; building 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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Editor's Note: For more information on Pathnet's business strategy, please refer
to Pathnet's press release issued earlier this morning, or call Pathnet at
202-295-3286.