Joint News Release: Bell Atlantic, NYNEX, CAI Wireless Systems Suspend Business Agreement For One Year

December 13, 1996

CONTACT: Brian R. Wood of Bell Atlantic Enterprises,

215-963-6204, or e- mail, brian.r.wood@bell-atl.com, or

Larry Plumb of Bell Atlantic Video Services, 703-708-4360,

or e-mail, lawrence.d.plumb@bell-atl.com; or Maureen

Flanagan, 212-395-3519, or e-mail, notes.mflanaga@nynex.com,

or Jack Hoey, 617-743-4760, or e-mail,

notes.jhoey@nynex.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


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

next year.

"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

site (http://www.ba.com), or by gopher (gopher://ba.com). To

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.