NEW YORK, Jan. 22 -- AT&T Wireless and NTT DoCoMo said today that they have commenced their previously announced strategic alliance to develop mobile multimedia services on a global-standard, high-speed wireless network.
NTT DoCoMo, one of Japan's leading communications companies, today acquired shares of AT&T preferred tracking stock, equivalent to 406 million shares of AT&T Wireless tracking stock (an approximate 16 percent economic interest) for about $9.8 billion. In addition, NTT DoCoMo has acquired five-year warrants to purchase the equivalent of an additional 41.7 million shares of AT&T Wireless tracking stock at $35 per share. AT&T reduced its retained interest in the AT&T Wireless Group by 178 million shares and received $20.50 per share from NTT DoCoMo. The balance of the 406 million shares came from the issuance of 228 million new primary shares of AT&T Wireless tracking stock at $27.00 per share.
As a result of this transaction, excluding the warrants and prior to the spin-off of AT&T Wireless, AT&T retains a 70 percent economic interest in AT&T Wireless' operating results. About 14 percent of the economic interest in AT&T Wireless' operating results will continue to be represented by the existing AT&T Wireless tracking stock publicly traded on the New York Stock Exchange.
This world-class alliance will bring an exciting new generation of mobile multimedia services to AT&T Wireless customers much more quickly than we anticipated even six months ago, said John D. Zeglis, chairman and CEO of AT&T Wireless. Millions of AT&T Wireless customers will soon have the benefit of a high-performing mobile Internet built-in to the fabric of everyday life.
AT&T Wireless is creating a new, wholly owned subsidiary to develop multimedia applications for its current network and a new, high-speed wireless network built to global standards. Both companies will share technical resources and support staffing of the new unit.Polatis Announces 2 Million in BackingCAMBRIDGE, England, Jan. 22 -- Fiber optic switch developer Polatis Ltd. has announced a 2 million (Pounds) investment package from a venture capital syndicate. Polatis, based on Cambridge Science Park, is facing the issue how to transmit data around global networks without losing speed and capacity at the switching centers between networks, the company said.
To meet the demands of high-bandwidth optical communication networks Polatis has developed an all-optical switch technology that avoids OEO conversion.
It is every new start-up's dream to attract backing from a powerful venture capital syndicate, said Andrew Dames, chief executive and founder of Polatis. Polatis was set up with the aim of developing a key component of the 'Holy Grail' for next generation communication networks. Investment from VC's Alta Berkeley and 3i prove there is confidence in us achieving just that .
The cross-connect segment of the global telecom switching market targeted by Polatis is currently estimated to be worth $0.3 billion and is forecast to grow in excess of $5 billion by 2003.
Polatis is a spin-off of Sentec - a Cambridge-based ideas company that was set up with the aim of creating and then spinning-out new businesses.E2O Signs Unique Technologies As North American Distribution PartnerCALABASAS, Calif., Jan. 22 -- E2O Communications Inc., a manufacturer of fiber optic transceivers for optical communications, announced that it has signed Unique Technologies Inc., in San Diego, Calif., as its North American distribution partner. Unique Technologies will provide distribution services and customer design support for E2O's existing and future optical transceiver product lines.
Unique Technologies is the distribution partner that can help us to expand our design base in North America, said Bob King, vice president of Sales for E2O. Unique Technologies will allow us to extend our product acceptance through its proven technical sales and logistics capabilities. Unique also is strategically positioned to provide E2O and its customers with the field applications resources required to support today's complex optical communications products and designs.
Unique Technologies specializes in semiconductor distribution through an engineering-centered sales and service approach.