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ADC Signs MOU with China Telecom to Participate in Hybrid Fiber Coax Trial; Company expands role in increasing availability of voice, data and video services throughout China.

MINNEAPOLIS--(BUSINESS WIRE)--June 4, 1996--ADC Telecommunications, Inc., today announced that it has signed a memorandum of understanding (MOU) with the Directorate General of Telecommunications, P&T, China (China Telecom). The agreement calls for ADC to participate in China Telecom's first hybrid fiber/coax network trial, the goal of which is to help increase the availability of voice, data and video services throughout China.

China recently began fostering competition in its telecommunications industry by implementing its ninth five-year plan for deploying telecommunications services throughout the country. During the next five years, China will install between 75 and 100 million new lines for telephony service -- a significant portion of this service is expected to be delivered over a hybrid fiber/coax (HFC) network.

Based on its past experience and current presence in China, ADC was selected to work in conjunction with the Heilongjiang Posts and Telecommunication Administration and provide its Homeworx(TM) HFC system for the trial network to be set up in Harbin City. ADC also will supply associated network management systems, as well as network infrastructure products and systems integration services.

"ADC is excited by the opportunity to participate in this trial with China Telecom because China represents the largest potential market for hybrid fiber/coax anywhere in the world," said John McConnell, director of global marketing for ADC's access platforms systems division. "Our company's experience in China, combined with the ability to offer total network solutions highlighted by the Homeworx system, strongly positions ADC to take advantage of the opportunities in the region."

ADC has been active in China since 1994 when the company established a joint venture - Shanghai ADC Telecommunications Equipment Co., Ltd. - for the manufacturing and marketing of fiber-optic video transmission equipment. Most recently, the company has formed an alliance with other service providers in China to assist in advancing the country's telecommunications infrastructure. The agreement with China Telecom calls for the Homeworx equipment to ship this summer and for the field trial to begin servicing customers in the fall of 1996.

The Homeworx HFC platform is a fully integrated, broadband loop transport system consisting of telephony, data and video subsystems. It supports services such as basic cable television and standard telephony, and offers a clear migration path to future digital broadband services. The Homeworx system, based on OFDM (orthogonal frequency division multiplexing) technology, offers a number of key advantages over competing HFC systems. OFDM technology provides twice the bandwidth efficiency of competing technologies, enabling the Homeworx system to accommodate 240 DS0s in one six megahertz channel. In addition, OFDM provides superior resistance to narrowband interference, especially common in the upstream bandwidth.

ADC Telecommunications, Inc. is a leading supplier of transmission and networking systems used to deliver voice, data and video services. The company holds a preeminent market position in physical connectivity products for wireless, fiber-optic, twisted-pair and coaxial networks. Wholly owned business units include ADC Video Systems, ADC Fibermux, ADC Kentrox, AOFR, ITS Corp, and Metrica Systems. The company also operates international business units in Australia, Belgium, Canada, China, England, Mexico, Singapore and Venezuela. Revenues for fiscal year 1995 were $586.2 million.

CONTACT: Lynne High

ADC Telecommunications

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Publication:Business Wire
Date:Jun 4, 1996
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