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MCLEAN, Va. & HERNDON, Va., Nov 22, 2005 (BUSINESS WIRE) -- RCN Corporation (NASDAQ:RCNI), a leading provider of triple play cable television, high-speed Internet and phone services, and First Avenue Networks (NASDAQ:FRNS), a fixed wireless broadband services provider, today announced that the two companies have entered into an agreement to form a strategic partnership to capitalize on the metropolitan wireless fiber extension market opportunity.
Subject to completion of a successful trial and the execution of definitive agreements, First Avenue will equip RCN Business Solutions, the wholly owned but separately managed division of RCN Corporation that provides bulk video, high-capacity broadband and voice services to business customers, wireless extensions of their fiber network at up to 155 Mbps. In return, RCN will provide First Avenue the fiber links necessary to deliver carrier-grade backhaul service to its fixed line and mobile carrier customers.
"Even in the largest metro areas in the U.S., fiber-optic network operators are not able to provide sufficient coverage to businesses and office parks, leaving holes in the network," said Emmy Johnson, principal analyst at SkyLight Research. "The ability to extend fiber networks by utilizing mid- to high-capacity wireless links at speeds equal to or greater than broadband is an extremely savvy and economical approach to reaching more customers, while having the added benefit of providing the shortest time to market."
First Avenue's wireless extensions will enable RCN to expand its facilities-based fiber optic broadband and hosting services to more of its target market -- large business customers. Wireless broadband access also provides physically diverse connectivity in the markets RCN serves.
RCN executive vice president and CTO Timothy Dunne said of the relationship, "RCN Business Solutions has unparalleled fiber optic density, metropolitan business access, and advanced network technology with an enhanced product line delivered over a fast and powerful platform suited for telecommunications carriers and enterprise broadband applications. As such, we are enthusiastic about cost-effectively expanding our footprint with First Avenue Networks' fiber extension solution to grow our subscriber base."
Dunne added, "We appreciate the opportunity to provide First Avenue Networks with additional fiber optic broadband capacity to augment its wireless backhaul network. This relationship will be mutually beneficial."
"First Avenue's focus is on helping carriers easily and economically expand constrained networks and reach unserved areas," said Michael Gallagher, president and CEO of First Avenue Networks. "Our partnership with RCN shows the breadth of opportunity our spectrum offers carriers of all types."
Commenting on the strategic nature of the partnership Mr. Gallagher continued, "The fact that RCN's fiber presence is in many of our target markets, along with RCN Business Solutions' focus on extending their network connectivity to quickly and cost effectively reach new customers, makes for an ideal partnership where everybody wins - especially the end customers. It exemplifies the value of our fiber extension solution - which represents the foundation of the second phase of our business plan. Providing wireless extensions to RCN's fiber-optic networks will leverage and complement our existing and planned mobile backhaul activities."
RCN, one of the largest U.S. competitive Multi-Service Operators (MSO), and First Avenue are initiating the business relationship with a trial, which is currently underway in the New York City metropolitan market. The companies will have the opportunity to expand the relationship into RCN's other markets including Philadelphia/Lehigh Valley; Washington, DC; Boston and Chicago.
About First Avenue Networks
First Avenue Networks (NASDAQ:FRNS) is a telecommunications provider offering wholesale services for wireless backhaul, fiber network extensions, and broadband connectivity for service providers and mobile operators. First Avenue Networks holds the most expansive collection of millimeter wave spectrum assets in the United States. The company has approximately 1.5 billion channel pops between its 24 GHz and 39 GHz spectrum licenses. First Avenue Networks offers nationwide coverage and added depth in major U.S. metropolitan areas, holding nearly 600 MHz of spectrum in the top 75 U.S. markets. For further details, visit http://www.firstavenet.com/ or call (703) 873-4165.
About RCN Corporation
RCN Corporation, http://www.rcn.com, is one of the largest facilities-based competitive providers of bundled cable, high-speed internet and phone services delivered over its own fiber-optic local network to residential customers in the most densely populated markets in the U.S. RCN Business Solutions is a growing business that also provides bulk video, high-capacity and voice services to business customers. RCN provides service in the Boston, New York, Eastern Pennsylvania, Washington, D.C., Chicago, and San Francisco metropolitan markets. RCN also owns 49% of Megacable, one of the largest cable companies in Mexico.
The above information includes forward-looking statements regarding the benefits of the announced agreement, securities trading and the provision of services by the Company and other opportunities in the Company's marketplace. These statements are not guarantees of future performance. Known and unknown risks, uncertainties, and other factors, including without limitation, the risk that the trial relationship will not be successful, that the parties may not be able to reach definitive agreements, capital constraints, changes to or failure to execute the Company's strategy and business plan, non-renewal or revocation of FCC licenses, variable customer demand, technological risks, ability to manage growth, competition and government regulation and other risks may cause actual results to differ materially from the future results implied or expressed in the forward-looking statements. Many of these risks and uncertainties are further discussed in our most recent filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the fiscal year ended December 31, 2004. The Company does not undertake to and expressly disclaims any obligation to update or revise its forward-looking statement publicly to reflect any change in these forward-looking statements, or in events, conditions or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.
SOURCE: First Avenue Networks
First Avenue Networks
Investor Contact:
Trish Drennan, 703-873-4165
tdrennan@firstavenet.com
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Press Contact:
GAJ Services Inc.
Linda Pitt, 859-291-1005
lpitt@gajservices.com
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RCN Corporation
Investor Contact:
Richard Ramlall, 703-434-8430
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Press Contact:
Communicreate
Mike Houghton, 703-799-7383