Internet growth spurs Pac Bell deal
To cope with growing Internet use and reach new customers for local calling service, Pacific Bell has agreed to buy wireless transmission capacity from WinStar Communications.
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The three-year pact lets Pacific Bell purchase WinStar's services whenever it needs additional network capacity, provided that WinStar's prices are competitive.
New York-based WinStar said it will use its licenses for 38 GHz band transmission and other parts of the spectrum to provide Pacific Bell with capacity, and it will add engineers and support staff to help meet Pacific Bell's needs.
The agreement resulted from strong demand in California for T-1 and DS-3 lines and broadband services-a demand fueled by the Internet. Pacific Bell is forecasting demand for several thousand new T-1 and DS-3 lines in the coming year.
In addition, Pacific Bell will use the capacity to reach local calling customers outside its current franchised area, giving the company a head start in the newly competitive local market.
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© 2012 Penton Media Inc.
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