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Ascend's Data Switches Driving Next-Generation CLEC Networks; 11 of Top 12 U.S. CLECs Use Ascend Data Switches for ATM, Frame Relay and Remote Access.


ATLANTA--(BUSINESS WIRE)--June 8, 1999--

Supercomm, Booth no. 4121/Ascend Communications, Inc. (Nasdaq:ASND ASND A Streetcar Named Desire (play) ), a leader in wide area networking (WAN) and Intelligent Network (IN) solutions for providers and users of the next-generation public network, today announced that 11 of the top 12 competitive local exchange carriers (CLECs) ranked by revenue in a report by New Paradigm New Paradigm

In the investing world, a totally new way of doing things that has a huge effect on business.

Notes:
The word "paradigm" is defined as a pattern or model, and it has been used in science to refer to a theoretical framework.
 Resources Group, Inc. (NPRG NPRG New Paradigm Resources Group, Inc. ) use Ascend equipment including core Asynchronous Transfer Mode See ATM.

(communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell).

See also ATM Forum, Wideband ATM.

ATM acronyms.

Indiana acronyms.
 (ATM), multiservice ATM and Frame Relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers.  and WAN access switches.

The 1999 CLEC (Competitive Local Exchange Carrier) An organization offering local telephone service that is not one of the traditional telephone companies. The Telecommunications Act of 1996 allowed competition to the incumbent telcos (ILECs), enabling new companies (CLECs)  Report(TM) by New Paradigm Resources Group, now in its 10th edition, highlights the continued growth of the industry in 1998. Some of the key trends that become evident as a result of New Paradigm Resources Group's report is the ongoing emergence of new CLECs, the continued expansion of existing CLECs and that the data services sector is a major driver of CLEC growth. The top 12 CLECs ranked by 1998 annual revenue include:
1.       AT&T Corporation
2.       MCI WorldCom
3.       Intermedia Communications, Inc.
4.       McLeodUSA, Inc.
5.       Level 3 Communications
6.       RCN Corporation
7.       BTI
8.       ITC DeltaCom, Inc.
9.       e.spire Communications, Inc.
10.      WinStar Communications, Inc.
11.      NEXTLINK Communications, L.L.C.
12.      Time Warner Telecommunications


Ascend has a tradition of identifying and establishing itself in emerging markets, first in the Internet service provider Internet service provider (ISP)

Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password.
 (ISP (1) See in-system programmable.

(2) (Internet Service Provider) An organization that provides access to the Internet. Connection to the user is provided via dial-up, ISDN, cable, DSL and T1/T3 lines.
) market and more recently the CLEC market.

"The 1999 CLEC Report by New Paradigm Resources Group clearly shows that 1998 was a banner year for the industry--especially in the data services sector where growth is strongest," said David Markowitz, director of CLEC Marketing, Ascend Communications. "Ascend is pleased to be a leading provider of data products to the CLEC market. Our strategic relationships with the top drivers in the industry puts us in the driver's seat drivĀ·er's seat
n.
A position of control or authority.
 of rapid and continued expansion of ATM, Frame Relay, DSL DSL
 in full Digital Subscriber Line

Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary
, Remote Access, and Voice over Internet services."

The 1999 CLEC Report shows that the industry experienced tremendous growth in 1998 and New Paradigm Resources Group forecasts continued strong growth through 2001. For example, a sampling of revenue from the top 100 CLECs shows that industry revenue grew at 89 percent between 1997 and 1998, with 1997 revenue estimated at $5.61 billion and 1998 revenue estimated at $10.62 billion. The Report clearly shows the data services sector of the CLEC industry growing the fastest. For example, 1998 data revenue was $2.47 billion and is expected to grow to $44.88 billion in 2001. Annual growth rates Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Notes:
Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
 for data services were 356 percent in 1998, and projections are 202 percent in 1999, 162 percent in 2000, and 130 percent in 2001.

"Our Annual CLEC Report reflects New Paradigm Resources Group's ongoing research and analysis of both the individual CLECs and the industry in the aggregate. This year's report contains some noteworthy additions, such as a chapter on the number one CLEC market driver--the data services sector," said Craig M. Clausen, senior vice president and chief operating officer Chief Operating Officer (COO)

The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president.
, New Paradigm Resources Group, Inc. "Ascend is clearly leading the data infrastructure suppliers to the CLEC market with its advanced ATM, Frame Relay and remote access data switches. The top 11 out of 12 revenue-generating CLECs use Ascend data switches."

The 1999 CLEC Report, recognized as the definitive source of information on the CLEC industry, provides detailed information on the most important facilities-based companies that are providing competition to the ILECs. The report offers insightful forecasts concerning the future of the CLEC industry, and in-depth profiles of the top CLECs currently in operation. Each profile discusses the CLEC's history and development and includes a brief strategic analysis of the company's current operations and prospects. The report also updates and analyzes the various regulations at the federal, state and local levels that are impacting the CLECs.

New Paradigm Resources Group

New Paradigm Resources Group, Inc. based in Chicago, IL, has provided business planning, strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. , regulatory advice, competitive assessment and governmental representation to leading competitive telecommunications and energy companies since 1993. For more information about New Paradigm Resources Group, please visit their Web site at http://www.nprg.com. New Paradigm Resources Group is headquartered at 12 S. Michigan Avenue, 5th Floor, Chicago, IL 60603; phone is 312-980-7848; fax is 312-980-4992.

About Ascend Communications

Ascend Communications, Inc. (Nasdaq:ASND) develops, manufactures, sells and services wide area networking solutions for telecommunications carriers, Internet service providers and corporate customers worldwide.

For more information about Ascend and its products, please visit the Ascend Web site at www.ascend.com, or send e-mail to info@ascend.com. For Investor Relations Investor relations

The process by which the corporation communicates with its investors.
, please call our communications hotline at 800-648-3059 or 760-704-4423 (outside the US & Canada). Additional investor information can also be accessed on our Web site at: http://www.ascend.com/investor/. Ascend is headquartered at One Ascend Plaza, 1701 Harbor Bay Parkway Bay Parkway refers to the following roads and transit stations: Roads
  • Bay Parkway (Brooklyn) in Brooklyn, New York City
  • Bay Parkway (Jones Beach) in Jones Beach State Park in Nassau County, New York
Subway stations
, Alameda Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. , Calif. 94502; phone is 800/ASCEND4 and fax is 510-814-2300.

In January 1999, the Company entered into an Agreement and Plan of Merger (the "Merger Agreement") with Lucent Technologies, Inc. ("Lucent"), pursuant to which, each outstanding share of Ascend common stock will be exchanged for 0.825 shares of Lucent common stock and each outstanding option or warrant to purchase Ascend common stock will be converted into an option or warrant to purchase Lucent common stock (adjusted for the exchange ratio).

In February 1999, Lucent announced a two-for-one stock split, payable on April 1, 1999, to shareholders of record as of March 5, 1999. Under the terms of the Merger Agreement, the exchange ratio will be adjusted for the effect of this stock split and any similar changes in the capitalization of Lucent. This release, other than historical financial information, contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 that involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual future events or results. For instance, factors which could cause actual events or results to differ from anticipated events or results include the rate of development of new and enhanced technology by Ascend and its competitors, the integration of new businesses, the introduction and market acceptance of new products by Ascend and its competitors, competitive pricing actions and marketing programs, among others. Readers are referred to the documents filed by Ascend Communications with the Securities and Exchange Commission, specifically the most recent reports on forms 10-K and 10-Q, which identify important risk factors which could cause actual results to differ from those contained in the forward-looking statements.
COPYRIGHT 1999 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:Jun 8, 1999
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