December 13, 1996
CONTACT: Brian R. Wood of Bell Atlantic Enterprises,
215-963-6204, or e- mail, firstname.lastname@example.org, or
Larry Plumb of Bell Atlantic Video Services, 703-708-4360,
or e-mail, email@example.com; or Maureen
Flanagan, 212-395-3519, or e-mail, firstname.lastname@example.org,
or Jack Hoey, 617-743-4760, or e-mail,
email@example.com, both of NYNEX, or James P. Ashman of
CAI Wireless Systems, 518-462-2632
Joint News Release: Bell Atlantic, NYNEX,
CAI Wireless Systems Suspend Business Agreement For One Year
CAI Provided with Option to Repurchase Bell Atlantic,
NYNEX Investment in CAI Securities
Changing Market Conditions, Full Service Network
Buildouts Lead to Re-Evaluation Of Plans for Digital
Wireless Video Strategy
NEW YORK, PHILADELPHIA and ALBANY, N.Y., Dec. 13 --
Bell Atlantic (NYSE: BEL), NYNEX (NYSE: NYN) and CAI
Wireless Systems, Inc. (Nasdaq: CAWS) are suspending a 1995
business agreement for one year and providing CAI with the
option to repurchase a $100 million investment in CAI
securities made by Bell Atlantic and NYNEX.
Under a new agreement signed yesterday, the way has
been cleared for CAI to develop a more flexible approach to
the use of its MMDS spectrum, including the provision of
video, voice and data services in Northeast and mid-Atlantic
Bell Atlantic and NYNEX said they were re-evaluating
their decision to use CAI's MMDS (Multichannel Multipoint
Distribution Service) transport systems as an
early-to-market video strategy due to a number of factors,
including changing market conditions for entertainment
services, the technical availability of fiber-based Full
Service Networks and CAI's desire to expand its use of
spectrum beyond video transport.
As a result, the companies have re-negotiated a 1995
agreement to develop and deploy wireless video networks and
have also suspended plans to jointly launch wireless video
services in Hampton Roads, Va., and Boston, Mass., in
Under the terms of the agreement announced today, CAI
will be given an option for up to one year to purchase Bell
Atlantic and NYNEX's interest in the company. The agreement
also enables CAI to expand the markets in which it may seek
FCC approval for mixed use of MMDS spectrum.
Bell Atlantic and NYNEX added that they continue to
view the marketplace for broadband services such as video
and high speed data connectivity over the Full Service
Network as an attractive long term growth strategy.
Therefore, they are still evaluating a variety of delivery
systems for video and entertainment services.
Bell Atlantic is currently providing video
programming over its fiber network in Toms River, N.J., and
recently announced plans to deploy switched digital video in
the Philadelphia market.
NYNEX also has selected switched digital technology
as part of the company's plan to deliver the next generation
of network technology to its customers. In October, NYNEX
signed a multi-year agreement with General Instrument that
includes one million lines of transport electronics to be
deployed in metropolitan Boston and New York City areas, as
well as parts of Long Island and Westchester County, N.Y.
The first installation of this new technology, initially for
voice applications, will begin in metropolitan Boston early
"CAI is anxious to test the versatility of its
considerable MMDS spectrum in new endeavors that combine
video, voice and data transmission," said Jared E.
Abbruzzese, chairman and CEO of CAI. "We have learned much
from building digital wireless systems during this trial. We
appreciate that they have given us the opportunity to
charter a different destiny for our company, and we hope to
aggressively press the regulatory envelope for full flexible
use of MMDS spectrum."
CAI has been exploring mixed use of MMDS spectrum in
markets not covered by the original agreement with Bell
Atlantic and NYNEX, such as Rochester, N.Y., where the FCC
has granted the company authority for a market trial with
500 users. The company has also requested FCC approval for a
two-way flexible-use MMDS trial in Hartford, Conn.
Bell Atlantic Corporation is at the forefront of the
new communications, entertainment and information industry.
In the mid-Atlantic region, the company is the premier
provider of local telecommunications and advanced services.
Globally, it is one of the largest investors in the
high-growth wireless communication marketplace. Bell
Atlantic also owns a substantial interest in Telecom
Corporation of New Zealand and is actively developing
high-growth national and international business
opportunities in all phases of the industry.
INTERNET USERS: Bell Atlantic news releases,
executive speeches, news media contacts and other useful information are
available on Bell Atlantic's media relations World Wide Web
receive news releases via e-mail send a message to
NYNEX is a global communications and media
corporation that provides a full range of services in the
northeastern United States and high growth markets around
the world, including the United Kingdom, Thailand,
Gibraltar, Greece, Indonesia, the Philippines, Poland,
Slovakia and the Czech Republic.
The corporation is a leader in telecommunications,
wireless communications, directory publishing and video and
entertainment services. NYNEX is also managing sponsor of
FLAG -- Fiberoptic Link Around the Globe -- the world's
longest undersea fiber optic communications cable.
FAX copies of recent NYNEX news releases are available free of charge, 24 hours a day. Call 1-800-331-1214 and an automated system will provide instructions.
CAI, based in Albany, N.Y., operates analog-based
wireless systems in New York City, Rochester and Albany,
Philadelphia, Washington, D.C., and Norfolk/Virginia Beach,
Va., and has a portfolio of wireless cable channel rights in
eight additional markets, including Long Island, Buffalo and
Syracuse, N.Y., Providence, R.I., Hartford, Conn., Boston,
Baltimore and Pittsburgh.
In addition, CAI owns approximately 52 per cent of CS
Wireless Systems, Inc., which is jointly owned by Heartland
Wireless Communications, Inc. CS Wireless has, on a pro
forma basis for announced transactions, approximately 6.2
million line-of-sight (LOS) households and 77,550
subscribers in 17 markets located primarily in the Midwest
and the Southwest regions of the United States.