Spike Broadband Systems and Denmark’s SONOFON Partner in $400M Deal to Implement World’s Largest Fixed Wireless Deployment



Industry-First Collaboration Brings to Market the Largest End-user Deployment of Voice Over IP Services, Will Serve More Than 95 Percent of Denmark’s Population

Copenhagen, Denmark & Nashua, NH - May 3, 2001 – Spike Broadband Systems, Inc., announced today the planned creation of the world’s largest fixed wireless deployment to date, detailed in a $400 million contract to deploy broadband services in the 3.5 GHz frequency band with SONOFON, a BellSouth International and Telenor company and Denmark’s second largest mobile communications carrier. This deployment will allow SONOFON to bring to market not only a variety of applications including cost-effective, reliable broadband data and video, but also the largest-ever end-user Voice over Internet Protocol (VoIP) deployment. SONOFON plans to execute the deployment over the next five years, reaching 95 percent of Denmark’s population.

Under the terms of this agreement, Spike, a leading provider of carrier-grade, fixed broadband wireless access solutions, will work together with a major international systems integrator to provide SONOFON with more than $335M in fixed wireless equipment.

“SONOFON has a long history of achieving profitability and success through innovation. This is most evidenced by both our pioneering work in Denmark with the first mobile GSM deployments and now with the largest fixed wireless deployment in history,” said Ulrik Bülow, CEO of SONOFON. “The Danish market, like the U.S. market, is extremely competitive. When we engage in new strategies, we play to win, which is why we chose to deploy VoIP and other rich applications using the Spike solution. In addition, we recognize that Spike’s proven track record will help SONOFON achieve the goals set in our aggressive growth plans as well as help our parent companies, Bellsouth and Telenor, pursue their global strategies.”

“SONOFON’s deployment is a seminal event in the telecommunications industry,” said Jim Zucco, chairman and CEO of Spike Broadband Systems, Inc. “It proves the business case for the entire fixed wireless market and establishes a clear roadmap for the industry to adopt. Together, SONOFON and Spike are making telecommunications history, with this project being the first in a growing number of large-scale, global deployments.”

The deployment schedule calls for Spike and the selected systems integrator to build the fixed broadband network infrastructure during the first two years. Within this timeframe, Spike will deliver countrywide coverage with its base stations and ensure a large market share with CPEs from its Continuum product line, a highly scalable technology platform for meeting the increased capacity requirements of high-growth fixed wireless broadband markets. The first customer shipment is expected in Q2 2001. Beginning in the fourth year, Spike will increase capacity of the base stations to accommodate the increased consumer demand.

Through its partnership with Spike, SONOFON will be able to provide its customers with advanced multimedia and content services on the Internet including Voice over IP (VoIP), fax over IP, video on demand and content filtering. In addition, SONOFON will be able to offer the services necessary to establish a presence on the Internet, such as Web hosting and design services, co-location and directory services. Using these, consumers can take advantage of information, content and online applications using unified messaging, email and online business applications.

About SONOFON:
SONOFON is Denmark's second largest telecommunications company with a turnover of more than DKK 3 Billion and approximately 1600 employees. Telenor (53.5%) and BellSouth (46.5%) own SONOFON. Since its launch in 1991 the company has established a countrywide network, a solid customer base (966,000 wireless customers) and SONOFON Partner chain of shops. The company is continuously introducing new services - the newest being Variant and Multiplan.

About Spike Broadband Systems, Inc.:
Spike Broadband Systems supplies turnkey, carrier-grade, fixed broadband wireless access solutions to telecom service providers seeking to deploy high-speed voice, data and video services at a fraction of the cost and time needed to deploy traditional wireline infrastructures. Spike designs, deploys and supports its own complete, high-capacity systems for the licensed 2.5GHz (including MMDS) and 3.5GHz (FWA or WLL) frequency bands. With systems operating worldwide, Spike understands the business economics that drive our customers’ success and their on-going requirement to satisfy the bottom-line. Our Spike Continuumä systems deliver unrivaled capacity and unparalleled scalability, empowering our customers to maximize the revenue potential from each unit of available spectrum.

For more information about Spike Broadband Systems, or the Spike Continuumä product line, visit www.spikebroadband.net



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