Telecommunications Design & Analysis

January, 2000

WinStar and Teligent utilize fixed wireless technology for telecommunications services. They place antennas on customers’ roofs that carry signals to antennas at the WinStar and Teligent hub sites. They also run cabling from customers’ rooftop dishes to their switch rooms.

WinStar and Teligent sell local, long distance, data and Internet access, email and Web hosting. They offer data speeds up to 28 T-1s, (T-3).

Who are WinStar and Teligent?

Teligent, 41% of which is owned by AT&T, and WinStar are traded on NASDAQ. Teligent’s nine-month revenues ending 9/99 were $15.8 million and WinStar’s were $301.4 million. They target small and medium sized businesses.

Where do they offer services?

WinStar wireless service is offered in Boston, Cambridge, Woburn and Burlington and is expanding to Waltham, Watertown and Newton. It will be in Worcester next year. Their antennas are on 110 buildings in Greater Boston.

Teligent also is in the Boston, Cambridge, Woburn and Burlington areas. They are expanding this year to cover most of the 25-mile belt around Boston. They also plan to be in Worcester and Springfield by early next year.

How reliable is fixed wireless?

Both WinStar and Teligent claim that their services are highly reliable. Before putting all of a company’s telecommunications services on their service, WinStar suggests that companies with concerns about reliability try it out first for their fax and modem lines.

Teligent states that they offer carrier grade wireless that is as reliable as the microwave AT&T uses to provide telecommunications in hard to wire areas such as the Grand Canyon. Because Massachusetts has heavy rainfall, which can interfere with wireless signals, fixed wireless companies need to design antennas closer together with stronger, more focused signals than in dryer climates such as in Arizona.

Capacity and cost

In addition to offering about 20% savings over Bell Atlantic and long distance for as low as 5.3˘ per minute both sell high capacity data and Internet access on one “pipe” at rates more affordable than traditional T-1 and more capacity for growth than DSL.

Teligent guarantees savings of 30% with a one-year contract and 50% with a three-year contract over Bell Atlantic costs. WinStar has periodic specials. For example, they offer free local service up to $1,000 monthly for one year.

Billing

Both companies offer unified billing for offices in multiple locations. Thus if an organization has multiple bills for offices around the country, with WinStar and Teligent, they can receive one bill for all sites that are in the Teligent or WinStar coverage areas. WinStar has service in 45 domestic metropolitan areas and Teligent has service in 40 metropolitan areas.

Redundancy

Companies need reliable telecommunications. Fixed wireless is a viable backup option. If an organization’s primary telephone service is lost; calls can be routed over the fixed wireless. Companies opting for fixed wireless as their primary service should put it in gradually before eliminating their copper and fiber landlines.

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Annabel Dodd Consulting • 46 Woodmere Road • Framingham, MA 01701 • Voice 508-877-6089 • Fax 508-877-9475 • adodd@doddontheline.com