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Telecommunications systems

Lucent and WinStar Sign $100 Million Services Deal and American Telecasting to be Acquired by Sprint

Strategic Insights

— 1 min read

Telecom companies Lucent and WinStar have signed a significant five-year contract worth $100 million for WinStar's local, long distance, and broadband services, including frame relay and ATM. This deal indicates the reliability of broadband wireless technology, as Lucent executives have chosen to use WinStar's services for internal corporate networking needs. Additionally, the two companies have agreed to a marketing pact, where they will co-develop products and services, promote each other's offerings, and engage in joint marketing efforts.

Key Takeaways:

  • Lucent and WinStar have signed a five-year contract worth $100 million for various services, including frame relay and ATM.
  • The contract is a major boost for broadband wireless technology, as Lucent executives have chosen to use WinStar's services for internal corporate networking needs.
  • The two companies have agreed to a non-exclusive marketing pact, where they will co-develop products and services, promote each other's offerings, and engage in joint marketing efforts.
  • WinStar's local, long distance, and broadband services will be used by Lucent's internal corporate networking needs.
  • American Telecasting has signed a definitive agreement to be acquired by Sprint and expects overwhelming shareholder approval.
  • The acquisition of American Telecasting is expected to be beneficial to its shareholders, with a value of $6.50 per share.
  • American Telecasting's main shareholder is chairman and founder Donald DePriest.

Statistics:

  • $100 million: The value of the five-year contract between Lucent and WinStar.
  • $6.50: The value per share of American Telecasting stock assigned when the acquisition agreement was sealed in April.
  • $168 million: The price Sprint agreed to pay for American Telecasting.
  • 5 years: The duration of the contracts signed by Lucent and WinStar for services deal and marketing pact.

Sources:

  • April 27: Mergers and Acquisitions date for American Telecasting to be acquired by Sprint.
  • May 21: Date Lucent signed a five-year contract with WinStar for $100 million worth of services.
  • October: Date WinStar signed a $2 billion financing and equipment deal with Lucent.
  • June 25: Date American Telecasting shareholders will meet to approve the acquisition by Sprint.
  • WinStar spokesman Eric Andrus (212/484-6725)
  • American Telecasting CFO David Sentman (719/260-5533)

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