November 6, 2001 -- Sprint (NYSE: FON, PCS) Local Telecommunications Division (LTD) announced plans to convert its existing digital circuit switched network to a packet switched network beginning in January 2003. Sprint says it will become the first incumbent local phone company in the United States to convert an entire (Class 5) digital circuit switched network to a packet switched network.

"Sprint LTD currently serves more than 8.3 million access lines. The conversion from the existing switched network to a packet switched network over the next eight years provides Sprint with product and service capabilities that will enable us to be even more competitive in the ever-changing telecommunications marketplace," said Mike Fuller, president of Sprint Local Telecommunications Division

Packet Switching enables multiple phone calls or Internet connections to share the same telephone line. For instance, if there are moments of silence in a telephone call or if data are not being downloaded during an Internet connection, "packets" from another call can be sent across the network. This next-generation packet evolution will enable Sprint to expand its "footprint" for offering data services such as Asynchronous Transfer Mode (ATM), frame relay and digital subscriber line (DSL) services. "As we migrate toward the next generation packet network Sprint will be able to offer new, advanced solutions for businesses at a much more rapid pace," said Phyllis Robertson, president of Sprint LTD's Business Markets Group.

"Today many subscribers are frustrated that because they are served behind a non-compatible network device such as a Digital Loop Carrier (DLC), they can't get high-speed data services. The deployment of this technology will circumvent these bottlenecks, said Jim Hansen, senior vice president, Sprint LTD Network. "Packet switching will also enable Sprint to provide customers with more reliable and robust data services."

As Sprint continues to invest capital within its local territories, consumers will have the opportunity to purchase new products and services much faster than with the existing network, because of the architecture infrastructure. Packet switching will require fewer host facilities to load software for new features. "This investment is another example of our commitment to the communities Sprint LTD serves," said Tom McEvoy, president, LTD's Consumer Markets Group.

From a network perspective, packet switching will reduce capital expenditures set aside for future growth. It will also create efficiencies that will enable Sprint to meet the demands of customers, while addressing capacity growth. The conversion will consist of an entire network evolution including both Class 4 and Class 5 components to packet utilizing subscriber line over ATM (SloA) technology. The process will combine three separate "overlay" networks into a single, converged network for voice, data and private line services.