NEC supplies equipment for MCI ADSL trials.

SERGEANT BLUFF, Iowa--(BUSINESS WIRE)--March 20, 1997--Using equipment provided by NEC America, Inc., MCI is delivering television signals over twisted pair copper wires for distances of nearly 2- 1/2 miles. The companies announced today that by using Asymmetric Digital Subscriber Line (ADSL) technology, they are assisting Northwest Iowa Telephone company preserve its existing copper cable network investment.

In a technology trial that began in July 1996, two channels of digital TV are being delivered to ten households. The trial involves use of MPEG2 video transport over existing copper cable using 6 Mbps ADSL transmission to a digital settop box, implementation of active and passive POTS splitters and implementation of a totally integrated end-to-end solution over a telecommunication network. This trial marks the first deployment of real-time 6 Mbps MPEG2 switched digital video in the United States. It is significant because the quality of switched digital video is much better than that of regular cable television.

The equipment elements supplies by NEC include ADSL video switching equipment with related cards located at the central office and an ADSL transceiver with an integrated POTS splitter and a settop box at the customers' premises.

Among other objectives, the companies wanted to assess ADSL as a technically and economically viable delivery mechanism for subscription broadcast services to residential users, to determine video quality performance and to evaluate ADSL exchange equipment and customer premises installation issues. An advanced ADSL management system provided Activation and Assurance for the trial.

Results to date establish that ADSL is a technically viable method for transmitting broadcast TV services although the cost for real-time encoders and the settop box in today's market remains high. Customers receiving Showtime and HBO are impressed with the 6 Mbps video quality and prefer it to traditional cable TV for live video broadcast.

Installation of ADSL equipment at the central office was relatively easy and similar to methods used to install typical telephone switching equipment. It takes up the usual amount of space required for an exchange rack. At the customers' premises, the installation option most favored was locating the settop box and the transceivers in the same room. The splitter is housed in the remote ADSL transceiver unit.

Dr. Rikio Maruta, senior vice president, NEC America, Inc., Public Networks Group, explained, "The success of this trial with MCI has provided a great opportunity to advance NEC's vision of integrating computers and telecommunications. By enabling telephone company customers to assess digital television, as opposed to cable's analog format, they can enjoy improved reception and become more active users. Moreover, this equipment has been further developed to provide high-speed Internet connections which will greatly enhance its value."

Mr. Peter Taylor, group general manager of NEC Australia, whose development team provided the system through NEC America, commented that he was very pleased with the success of this advanced ADSL Switched Digital Video trial.

The flagship company of Long Lines, Ltd., Northwest Iowa Telephone Company (NWIT), began operations in 1941. Northwest Iowa Telephone Company, Inc. is an independent telephone company serving the towns of Sergeant Bluff, Salix, and Sloan, Iowa. In 1981, NWIT signed the first equal access agreement in the country with another "non-common carrier," MCI. This brought national attention to the state of Iowa and is considered a model of legislative and regulatory advancements in the telecommunications industry.

MCI, headquartered in Washington, D.C., provides a full range of integrated communication services to more than 20 million customers. Credited with opening up the U.S. long distance market for competition, MCI is now leading the charge to bring competition to the $100 billion local market, offering American consumers for the first time the freedom to choose their local carrier. With 1996 revenue of $18.5 billion, MCI is one of the largest and fastest growing telecommunication companies in he world. On November 3, 1996, MCI announced a definitive agreement to merge with BT to form Concert plc, the world's first global communications company.

NEC America, Inc., an affiliate of NEC Corporation, develops, manufacturers and markets a complete line of advanced communications products and software for public and private networks. NEC Corporation and its affiliates worldwide are a $41 billion global leader whose 153,000 employees are dedicated to providing leading-edge computer, communications and semiconductor products and services.

CONTACT: Lee Alexander Associates for NEC America Inc.

Jean Hines, 919/557-7297

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MCI Corporate Communications

Robert Hoskins, 972/918-7810

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