Adaptive Broadband Corporation Signs Master Purchase Agreement with U S WEST

Strategic Insights -

Adaptive Broadband Corporation (Nasdaq:ADAP) has made significant strides in the broadband wireless technology market with the signing of a master purchase agreement with U S WEST (NYSE:USW). This partnership enables Denver-based Regional Bell Operating Company U S WEST and its affiliates to acquire Adaptive Broadband's AB-Access(TM) broadband wireless networking equipment. The agreement marks the first time a Regional Bell Operating Company has partnered with Adaptive Broadband for the sale of its AB-Access equipment. As part of the agreement, U S WEST plans to deploy AB-Access base stations and subscriber units in a field trial in the Denver Metro Area by the end of 1999.

Key Takeaways:

  • The master purchase agreement enables U S WEST and its affiliates to purchase AB-Access broadband wireless networking equipment from Adaptive Broadband.
  • The partnership marks the first time a Regional Bell Operating Company has collaborated with Adaptive Broadband for the sale of AB-Access equipment.
  • U S WEST plans to deploy AB-Access base stations and subscriber units in a field trial in the Denver Metro Area by the end of 1999.
  • AB-Access offers ultra-high speed Internet access with data transmission rates up to 25 Mbps, surpassing the speed of 56K dial-up services by over 400 times.
  • The technology enables users to download full-streaming video, data files, and surf the World Wide Web simultaneously.
  • Service providers in Florida and Texas are introducing commercial applications for data transport using the unlicensed U-NII band.
  • The commercial emergence of broadband wireless technology comes at a time when data traffic has surpassed voice traffic in volume.
  • Providers are transitioning from dedicated circuit-based networks to packet-based network infrastructures to efficiently supply Internet, data, video, and multimedia applications.

Statistics:

  • AB-Access provides data transmission rates up to 25 Mbps.
  • The technology surpasses the speed of 56K dial-up services by over 400 times.
  • Up to 20 million homes and businesses across the United States are projected to subscribe to high-speed data services by 2004.
  • The global wireless broadband access market is estimated to be valued at $100-billion.
  • The initial wave of demand for high-speed Internet access is driven by small to medium-sized businesses and telecommuters.

Sources:

  • Business Wire - Oct. 18, 1999
  • Adaptive Broadband Corporation investor relations
  • U S WEST official website