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ENRON COMMUNICATIONS, INC. ANNOUNCES FIBER LEASE AGREEMENT THAT EXPANDS NETWORK CONNECTIVITY TO KEY MARKETS
FOR IMMEDIATE RELEASE: Tuesday, May 11, 1999
PORTLAND - Enron Communications, Inc., a leader in the delivery of high bandwidth information and applications over its own Enron Intelligent Network announced today a reciprocal lease agreement with DTI, a facilities-based telecommunications company, for fiber optic network facilities that will significantly expand the footprint of Enron Communications’ network.
According to the agreement, DTI will lease fiber optic telecommunications facilities on Enron Communications routes from Salt Lake City to Denver and from Denver to Houston. Enron Communications will lease fiber optic telecommunications facilities on DTI’s routes from Denver to Kansas City, Mo. and from Kansas City, Mo. to Chicago.
“The fiber lease agreement with DTI not only confirms Enron Communications’ business model to quickly and cost effectively deploy a Pure IP™ fiber optic network coast to coast, but it accelerates our penetration of key markets with our ePowered™ desktop applications,” said Joe Hirko, president and CEO of Enron Communications. “This significant addition to our Pure IP fiber optic network will be embedded with the intelligent software that enables Enron Communications’ next generation ePowered applications, including streaming rich media and high bit rate media transport over the Internet.”
“This transaction represents the second significant agreement with a major facilities-based communications company for use of DTI’s fiber optic facilities within the past 30 days,” said Richard D. Weinstein, DTI’s president and CEO. “In addition to construction cost savings and accelerating completion, the transaction provides additional network at a lower cost to DTI than constructing the routes. The route from Denver to Dallas and then to Houston not only provides us a second, diverse route into the important Dallas and Houston markets, but also picks up San Antonio and Austin, providing a much more robust footprint in Texas. Finally, it creates another regional ring for DTI by bisecting a larger regional ring.”
About DTI: DTI, fifty percent owned by an affiliate of Kansas City Power and Light, Inc., currently provides carrier’s carrier services under existing contracts with AT&T;, Sprint, MCI Worldcom, Ameritech Cellular and IXC Communications. The Company also provides private line services to targeted business and governmental end-user customers. DTI is creating an approximately 20,000 route mile digital fiber optic network comprised of 20 regional rings interconnecting primary, secondary and tertiary cities in 37 states. By providing high-capacity voice and data transmission services to and from secondary and tertiary cities, as well as primary markets, the company intends to become a leading wholesale provider of regional communications transport services to interexchange carriers and other communications companies (“carrier’s carrier services”).
About the Enron Intelligent Network: The Enron Intelligent Network is an architecture based on a unique approach to networking through distributed servers, Enron Communications’ InterAgent® middleware and Enron Communications’ Pure IP™ technology. The intelligence of the network comes from Enron Communications’ standards-based InterAgent, a real-time intelligent messaging technology that supports the development and maintenance of distributed applications across diverse network environments. The Enron Intelligent Network brings to market a reliable, bandwidth-on-demand platform for delivering data, applications and streaming rich media to the desktop. The Enron Intelligent Network allows customers to access on-the-fly capacity, tiered QoS, data, application and content capabilities purchased entirely on an as-used basis.
About Enron Communications, Inc.: Enron Communications, a wholly owned subsidiary of Enron Corp. (NYSE: ENE), is a leader in the delivery of high-quality, high-bandwidth business information and applications. Enron Communications is building a long-haul fiber-optic network on strategic routes throughout the United States to create a data-centric national Pure IP backbone known as the Enron Intelligent Network. It is extending the capabilities of that network through agreements with ISPs and carriers seeking to generate new revenue sources and improved services.
Enron Corp. is one of the world's leading integrated natural gas and electricity companies. The company, which owns approximately $30 billion in assets, produces electricity and natural gas, develops, constructs and operates energy and water facilities worldwide and delivers physical commodities and risk management and financial services to customers around the world. Enron’s Internet address is www.enron.com, the stock is traded under the ticker symbol, “ENE.”
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For additional information please contact:
Tracy Smith
Enron Communications
503-464-7837
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