[from a PacTel press release] PacTel Corporation has announced plans to offer commercial digital cellular service in its Los Angeles market beginning in early 1995. The company has reached an agreement in principle for MOTOROLA NORTEL Communications to supply Code Division Multiple Access (CDMA) network infrastructure equipment to PacTel for deployment in Los Angeles, with provisions allowing future roll-out in its San Diego; Atlanta; and Sacramento, Calif., markets. PacTel's multi-phased CDMA infrastructure installation in Los Angeles will begin later this year, enabling the system to be fully tested and widely deployed prior to the start of commercial service. The digital network, which will grow to over 100 cells covering PacTel's Los Angeles market, represents the largest CDMA network equipment agreement announced to date. "CDMA will enable us to better serve today's customers and position PacTel to compete effectively for new customers," said Lee Cox, chief executive officer of PacTel Corporation and PacTel Cellular. "With CDMA we will have the capacity to offer a variety of new services such as messaging while improving call quality at the same time. That's a win-win for PacTel and our customers." Cox added that CDMA is ideal for today's popular pocket and handportable phones because it extends battery life and provides longer talktime for customers. MOTOROLA NORTEL will supply Motorola's CDMA SC 9600 base station and control platform and the Northern Telecom DMS-MTX SuperNode switching-platform to PacTel. "We're pleased that MOTOROLA NORTEL has pursued CDMA as aggressively as we have," said Cox. The equipment supplied by MOTOROLA NORTEL will be built in accordance with the IS-95 CDMA specification which is being finalized by the Telecommunications Industry Association after winning approval by carriers and manufacturers through the balloting process. "The industry's standard setting process has been supportive of our needs as a supplier, enabling us to provide CDMA network equipment in time to meet carrier demand," said Bill Spencer, president and chief executive officer of MOTOROLA NORTEL. "We are very pleased that PacTel Cellular has selected MOTOROLA NORTEL as its supplier for deploying CDMA technology." Since 1990 PacTel and Motorola have been conducting ongoing CDMA technology tests using PacTel's network in San Diego working in conjunction with Qualcomm Inc. and a group of other carriers including Ameritech, GTE, U S WEST NewVector Group, Bell Atlantic Mobile, NYNEX and Bell Mobility. The extensive testing has included over 350,000 miles of drive testing with more than 450 thousand calls and 10 million hand-offs. According to Craig Farrill, vice president of technology planning and development for PacTel Corporation, "CDMA has been very rigorously tested, prior to standardization, by over 15 cellular carriers, infrastructure and subscriber equipment manufacturers. We believe this cooperative industry testing will enable customers to experience a smooth transition to a benefits-rich, proven digital technology." During these tests, PacTel has demonstrated specific benefits that CDMA brings: capacity gains of over 10 times analog, improved call quality, broader coverage and enhanced call privacy. CDMA will ensure that channels are readily available to support the growing demand for cellular service. In 1992, PacTel had a 31.3 percent increase in its domestic cellular subscribers and now serves over 774,000 customers nationwide. PacTel recently announced an agreement with OKI telecom, making it the first carrier to order over 30,000 dual-mode CDMA portable and mobile phones, and expects to complete similar agreements with other subscriber equipment manufacturers to support its CDMA deployment plans. Noting that competitors in Los Angeles may deploy other forms of digital technology later in 1993, Cox added, "We're focused on making sure our customers experience a smooth transition to the best digital technology possible, not on being first to market. Our current analog network provides quality coverage where it counts. What's more, PacTel continuously upgrades its analog network to ensure superior quality service for those customers who choose to wait for digital service or remain on the analog network." PacTel Corporation, based in Walnut Creek, operates cellular, paging, vehicle location and international wireless ventures in a number of the world's best markets including Germany, Japan, Spain, Portugal and the United States. PacTel Cellular serves more than 774,000 customers in eight of the top twenty-five U.S. cellular markets. PacTel Corporation and PacTel Cellular are subsidiaries of Pacific Telesis Group, a worldwide diversified telecommunications corporation based in San Francisco. CONTACT: PacTel Corporation, Amy L. Damianakes, 510/210-3645 or MOTOROLA NORTEL Communications, Trish Cusack, 708/762-7047 [from a Motorola press release] Motorola's Cellular Infrastructure Group has announced that PacTel Cellular, a leading U.S. cellular operator, has reached an agreement in principle, to deploy Motorola's CDMA (Code Division Multiple Access) SC 9600 Base Station System for their Los Angeles market. Potential rollouts are to include the San Diego; Atlanta; and Sacramento, Calif., markets. Commercial service is planned for early 1995. The supply agreement between PacTel Cellular and MOTOROLA NORTEL Communications Co., represents the largest CDMA agreement announced to date. With the network to support more than 100 cell sites, the Los Angeles market, which is the second largest in the United States, represents a population or "pops" of over 14 million. This marks the third CDMA commitment using Motorola SC 9600 Base Station Systems; the first two being awards from U S West NewVector Group and Bell Atlantic Mobile. "The market response to our new base station product, the SC 9600, has been extremely positive. We feel that we are on target with operators' needs in driving their costs down while providing the best technological solutions available for their diverse needs," said Jack Scanlon, senior vice president and general manager, Cellular Infrastructure Group. Formally announced earlier this year, the SC 9600 Base Station System has a highly flexible architecture, developed in response to market needs for increased system quality, lower operating costs and compatibility with leading edge technologies. Supporting multiple analog and digital air interfaces within a single cabinet, the SC 9600 Base Station System will give cellular operators a smooth and economical migration path from analog to digital cellular systems, with a minimum of disruption of service to customers. The SC 9600's unique engineering design results in a four-to-one reduction in floor space, contributing significantly to lower operator costs for deploying and maintaining the system. Front panel access to all the equipment accommodates ease of system maintenance and growth. Other key features include centralized control functions, such as call processing and performance monitoring, and maintenance functions which are dynamically shared. This centralization of functions result in reduced execution time, ease of system maintenance and lower operating costs. A new feature called dynamic channel sharing, based on Motorola patented technology, coupled with Motorola multichannel linear power amplifiers (LPAs), allows channels to be dynamically assigned based on traffic loading. This reduces the number of channels required and allocates channel resources where needed, for improved system and call quality. Motorola LPAs also permit remote retuning of frequencies which provides significant time and cost savings. The integration of CDMA technology with Motorola's unique base station design provides for increased system capacity, new features and additional means for improving system quality. CDMA promises approximately 10 times the capacity of analog using the same amount of spectrum in a more efficient manner. Unique CDMA features such as "soft hand-off," variable rate speech coding and multipath signal processing, improve system quality by reducing the probability of dropped calls and maintaining speech quality through optimal radio link integrity. Subscriber benefits include increased talk times for portable units, more secure transmissions and special service options such as data, integrated voice and data, fax and tiered services. The SC 9600 platform was also selected by leading operators, TU-KA Tokyo and TU-KA Tokai, for PDC (Personal Digital Cellular, formerly Japan Digital Cellular) deployment in the largest cities In Japan. TDMA (Time Division Multiple Access) -based, PDC operates in the 800 MHz and 1.5 GHz frequency bands. The SC 9600 Base Station System was developed jointly by Motorola's Fort Worth and Arlington Heights facilities. Motorola is the world's leading designer, manufacturer and supplier of cellular systems, infrastructure equipment and subscriber products. The company is also one of the leading providers of electronic equipment, system components and services for worldwide markets. PacTel Corporation, based in Walnut Creek, operates cellular, paging, vehicle location and international wireless ventures in a number of the world's best markets including Germany, Japan, Spain, Portugal and the United States. PacTel Cellular serves more than 774,000 customers in eight of the top 25 U.S. cellular markets. PacTel Corporation and PacTel Cellular are subsidiaries of Pacific Telesis Group, a worldwide diversified telecommunications corporation based in San Francisco. MOTOROLA NORTEL Communications Co., headquartered in Schaumburg, Ill., is a joint venture company of Motorola Inc. and Northern Telecom Inc. which sells, services and supports cellular telephone networks in the United States, Canada, Mexico, Central and south America and the Caribbean. CONTACT: Motorola, Judy SooHoo, 708/632-4474 or PacTel Corp., Amy L. Damianakes, 510/210-3645 or MOTOROLA NORTEL, Trish Cusack, 708/762-7047