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Telecommunications industry

NEXTLINK Selects Nortel Networks for Broadband Wireless Solution

Strategic Insights

— 2 min read

NEXTLINK Communications, a fast-growing provider of broadband communications services, has chosen Nortel Networks as its vendor for broadband wireless access equipment. The agreement was announced at the Broadband Wireless World Forum in San Francisco and comes as NEXTLINK plans to launch broadband wireless networks in 25 U.S. markets by the end of the year. The partnership will enable NEXTLINK to deploy broadband direct connections to its customers and integrate wireless capabilities with its local fiber optic networks.

Key Takeaways:

  • NEXTLINK has selected Nortel Networks to provide broadband wireless, point-to-multipoint access equipment, including Reunion ATM-based point-to-multipoint FDMA and TDMA solutions, as well as Nortel Networks' point-to-point radios.
  • The partnership will enable NEXTLINK to deploy broadband direct connections to its customers and integrate wireless capabilities with its local fiber optic networks.
  • NEXTLINK plans to use the equipment in a number of markets scheduled for commercial broadband wireless deployment this year, including Dallas and Los Angeles, where it is currently using broadband wireless service to link customers to its local fiber optic rings.
  • The company will use a multi-vendor strategy for its broadband wireless networks and expects to award additional contracts as needed.
  • NEXTLINK is the largest holder of broadband fixed wireless spectrum in North America, with licenses covering 95% of the population in the top 30 markets in the United States.
  • The company will provide integrated, end-to-end telecommunications solutions to its customers through its collection of facilities, including its high-speed, IP-centric fiber optic backbone network that will connect over 50 cities in the United States and Canada.
  • NEXTLINK and Concentric Network Corporation have announced an agreement to combine the companies, with the transaction expected to close in the second quarter of this year.
  • Concentric provides complete Internet business solutions for small- and medium-sized enterprises, and the combined company will have a global presence, serving carrier, service provider, and enterprise customers.

Statistics:

  • NEXTLINK has 49 markets in which it currently provides service.
  • The company plans to commercially launch broadband wireless networks in 25 U.S. markets by the end of this year.
  • NEXTLINK has licenses covering 95% of the population in the top 30 markets in the United States.
  • The company's high-speed, IP-centric fiber optic backbone network will connect over 50 cities in the United States and Canada.
  • Nextlink's fiber optic backbone network is expected to be finished in 2001.
  • Nortel Networks had 1999 U.S. GAAP revenues of US$21.3 billion.

Sources:

  • "NEXTLINK Selects Nortel Networks for Broadband Wireless Solution" (Business Wire, March 15, 2000)
  • NEXTLINK Communications, Inc. (NASDAQ:NXLK)
  • Nortel Networks (NYSE/TSE: NT)
  • Concentric Network Corporation
  • Unified Networks (trademark of Nortel Networks)
  • Reunion (trademark of Nortel Networks)

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