AT&T Wireless venture in India to launch cellular service in Gujarat and Maharashtra, including Goa.

SEATTLE--(BUSINESS WIRE)--Oct. 24, 1996--AT&T Wireless Services Inc. announced Birla-AT&T Communications, its joint venture in India, will make world-class cellular service available for the first time to residents of India's two largest, most economically developed states -- Gujarat and Maharashtra, including Goa.

Birla-AT&T Communications Ltd., a joint venture between the Aditya V. Birla Group (51 percent) and AT&T Wireless Services (49 percent), announced its preparedness to launch a wide range of advanced cellular services across the two states.

This announcement marks the completion of the major aspects of the first phase of the Rs.5,181 crore (US$1.5 billion) project to build India's largest cellular network over the next 10 years.

By the end of the 10-year license period, the network is expected to serve over 1 million cellular subscribers in the two states. The service will be marketed under the AT&T brand name and is expected to be ready for service before Diwali (early November).

Recently, an inaugural mobile-to-mobile test call of the service was made in Maharashtra, by the Honorable Chief Minister Shri Manohar Joshi, and in Gujarat by the Chief Secretary of the state.

"It is a matter of great pride for us to be the first to offer an advanced range of cellular services to customers in Gujarat and Maharashtra," said Mr. Kumar Mangalam Birla, chairman, Birla-AT&T Communications Ltd. and head of the Aditya V. Birla Group of companies. "The joint venture is committed to building a world class cellular network in the two states, and providing quality of service that will exceed the expectations of our customers".

The Birla-AT&T cellular service offer, bookings for which were opened in August 1996, has already generated tremendous demand. Beginning Diwali and through the end of year, Birla-AT&T will roll out cellular services in Gujarat (from Gandhinagar, Ahmedabad, Baroda, and Surat), in Maharashtra (from Pune, Nashik, Ahmednagar, the Kolhapure highway), and in Goa (from Panjim, coastal and interior Goa). Birla-AT&T will also offer cellular service along the highways and railroads between the major cities connecting Gujarat and Maharashtra with Mumbai.

Birla-AT&T will be one of the first to launch commercial cellular service among the 14 companies, awarded 32 cellular licenses nationwide in late 1995.

"Over the past four years we have initiated a focused and important international wireless strategy of which the Birla-AT&T joint venture is a critical element," said Steve Hooper, president and chief executive officer, AT&T Wireless Services. "Customers in Gujarat and Maharashtra, including Goa, will now have the convenience of being able to communicate with each other anytime and anywhere."

"At the beginning of the year, we promised to offer the most technologically advanced cellular service by Diwali, to customers in Gujarat and Maharashtra, including Goa," said John J. Legere, president and CEO, AT&T Asia/Pacific. "Now, we're delighted to announce the availability of that service during one of the most important Hindu festivals of the year. The commencement of this Rs.5,181 crore (US$1.5 billion) project is also a tribute to the memory of the late Mr. Aditya V. Birla, whose vision and will continue to influence the direction our business will take in the future."

Birla-AT&T Communications was awarded the cellular licenses on Dec. 11, 1995. The joint venture has committed Rs.3,451.80 crores (US$1 billion) as a license fee over the 10 year period and another Rs.1,802 crores (US$ 515 million) as the cost of establishing the network and other related services.

The joint venture recently increased the total paid-up capital from Rs.525 crores (US$ 150 million) to Rs.812 crores (US$ 232 million). A further request to Foreign Investment Promotion Board has been made for increasing the equity up to Rs.1,200 crores (US$ 343 million).

Mr. Rajan Matthews was appointed president and CEO of Birla-AT&T and has lead the start-up of operations and the recruitment of more than 240 people, which will grow to a total of 350 employees by the end of 1996. The new staff has been undergoing extensive training in India and the U.S. in preparation for the launch of the cellular service.

The Birla-AT&T network, which is based on the GSM (Global System for Mobile Communications) standard, has installed the latest generation MSCs (Main Switching Centres) in Pune, Goa and Gandhinagar/Ahmedabad. The MSCs have already been tested and integrated into the network. The project will in the first three years, include 350 cell sites across the two states. The most technologically advanced billing systems and customer care facilities have been established to provide 24-hour service to subscribers across Gujarat and Maharashtra, including Goa.

Birla-AT&T is also a member of the nine-way roaming alliance called World1 Network. By the first quarter of 1997, the company will provide a seamless roaming service to its subscribers in every major city in India, covering 85 percent of the country's cellular footprint. It is envisaged that the World1 Network will also provide international roaming to traveling subscribers in the near future.

The Aditya V. Birla Group is one of India's largest industrial houses, with extensive overseas operations, knowledge and experience in implementing large projects, and annual revenues of Rs.14,000 crore (US$ 4 billion).

AT&T Wireless Services is the world's largest cellular services company with more than 65 lakh (6.5 million) subscribers. AT&T Wireless Services is a premier provider of wireless voice, advanced messaging, aviation communications and wireless data services in the U.S. It is a wholly owned subsidiary of AT&T (NYSE: T), the world's leading provider of communications services and products.

CONTACT: AT&T Wireless Services

Todd Wolfenbarger, 206/828-1851

Ken Woo, 206/828-1349