ADC in $300 million deal

ADC has announced that it has signed a three-year contract to supply its complete range of Hybrid Fibre Coax network equipment and services to Everest Connections, a US broadband cable network builder and alternative services provider. ADC estimates the agreement to be worth $300 million over the next three years.

Everest has announced plans to build and operate innovative broadband networks that bring digital video, telephony and data services to customers in at least four US markets, including Kansas City; Minneapolis and St. Paul; and Tulsa.

The new networks are designed to adapt to customer needs and new technology, extend fibre further into the network, offer greater bandwidth, serve a larger numbers of customers, and deliver video-on-demand and voice over the Internet.

‘ADC is enormously pleased to reach this agreement with Everest and is excited to begin delivering our complete offering of broadband network equipment and services that will turn their vision of a truly multiservice cable network into a reality,’ said Arun Sobti, president of ADC’s Broadband Access and Transport Group. ‘Selecting ADC enables Everest to rapidly scale up their subscriber base and provides the flexibility for the migration to future service offerings.

Under the terms of the three-year renewable contract, Everest will purchase all of its requirements from ADC for broadband products and services including Homeworx, Optiworx, Pathworx, RF Worx and Project management and integration services to Everest in each city where its products will be deployed.

Everest offerings include local and long-distance phone service, capacity for 300 TV and digital music channels, and Internet access with speeds in excess of 1.5 megabits or over 25 times faster than current dial-up services.

Everest’s other service options include a range of enhanced services for both business and residential customers such as voice mail, private line, and high-speed, redundant networking.

Everest will also provide enhanced network connectivity for government, educational and public access locations.

Construction of the Kansas City-area network started in July and Everest expects that the initial subscribers will be in service in the fourth calendar quarter of 2000. Everest estimates that it will take up to five years to complete the network build-out.