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[18 JAN 99] MARCONI COMMUNICATIONS PRESS RELEASE
Surf's Up For Marconi Coventry In 4M Project

Marconi Communications has won a 4 million contract to install digital exchange and SDH (synchronous digital hierarchy) transmission equipment which will help ScottishTelecom to reap the benefit of its recent acquisition of Demon Internet, one of the UK's leading Internet Service Providers.

Working within an extremely challenging timescale, Marconi Communications - a European leader in broadband transmission and networks integration - is currently in the final stages of completing the installation of two System X telephone exchanges and locally-built transmission equipment which will allow ScottishPower's subsidiary to route an increasing volume of internet traffic through its network.

Rod Smith, Coventry-based regional managing director of Marconi Communications, said:

"This is further evidence of the growing synergies between telecom network operators and Internet Service Providers. By combining network ownership with an internet subscriber base, operators are able not only to gain revenues from subscriptions and call charges but have the option to provide their internet subscribers and World Wide Web "surfers" with value-added opportunities such as selective freephone or premium rate access."

Rod Matthews, chief executive of ScottishTelecom and chairman of Demon Internet, confirmed:

"We will be seeking to route a significant proportion of Demon Internet traffic across the ScottishTelecom fibre-optic network, thus increasing revenues for the company as a whole.

"The provision of on-line and telecoms-based information has become an increasingly important element of our business. The UK internet access market, both for business and residential subscribers, is consolidating in favour of larger suppliers with a significant subscriber base which have access to capital and additional value-added service."

The new digital exchanges are being installed at Demon Internet's headquarters in London Docklands, where they will provide high quality, high availability internet access when the project is completed. Marconi Communications SDH (synchronous digital hierarchy) transmission equipment made at New Horizon Park in Coventry is already installed in a major part of the ScottishTelecom network, which is being extended to cover the whole of the Highlands and Islands Region in Scotland, as well as the Manweb electricity region in North West England.

Marconi Communications is a world leader in smart broadband transmission and network integration. It was formed by the merger of GPT Limited, Marconi SpA, GEC Hong Kong and other businesses wholly owned by GEC, a global manufacturer of intelligent electronic systems.

MORE INFORMATION: Marconi Communications Press Office 0115 9433687
   

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CWN / Business / Newswire / Marconi / 18 Jan 99

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