interWave to Deploy First Voice and Data Network in Micronesia

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January 9, 2002 — (WEB HOST INDUSTRY REVIEW) — interWave Communications (iwv.com), a broadband wireless data
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network provider, announced yesterday a $4.4 million contract from FSM
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Telecommunications Corporation (www.fm) to provide and deploy GSM-based cellular and broadband access network equipment throughout the Federated States of Micronesia (FSM).
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FSM Telecommunications Corporation, the national communications operator,
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provides all telecommunication services for the FSM, which consists of 607
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individual islands stretching 1,700 miles across the western Pacific Ocean.
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The initial deployment will provide integrated cellular and broadband
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networks in Pohnpei, Chuuk, Yap, and Kosrae, with Pohnpei serving as a
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centralized management and administrative center.
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“Deploying the first wireless communications solution throughout Federated
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States of Micronesia demonstrates the flexibility, robust nature and high
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capacity of both of our GSM and broadband solutions,” said Priscilla Lu,
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chairman and CEO of interWave. “Being able to provide and deploy affordable
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cellular and broadband communication infrastructures to areas of the world
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where terrain, climate or distance represents a challenge is one of our
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greatest strengths. Most importantly, our solution will provide basic
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communications capabilities to those that have gone without, furthering our
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vision of ‘reaching the unreached.”‘
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Communications infrastructure equipment including base stations, switches
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and radios will be installed on each island, providing instant localized
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communications capabilities. Connected together by broadband links, the
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system delivers total coverage between all of the islands, as well as
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efficient routing of long distance voice traffic. For example, using an IP
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backbone, the number of satellite hops between islands will be reduced thus
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improving call quality and minimizing costs for other services such as voice
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mail and Short Message Service. Further, localized switching, made possible
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by interWave’s patented PALIM switching technology, will increase network
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performance and quality of service while decreasing network congestion, call
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interference and expensive backhaul costs typically associated with
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transporting cellular traffic.
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“The economic viability and scalability of interWave’s solution were two of
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the key reasons we chose their solution to expand our business,” said Takuro
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Akinaga, CEO of FSM Telecommunications. “We have rebuilt FSM’s domestic PSTN
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infrastructure enabling thousands of families and businesses in populated
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areas to receive improved and first-time service, yet this is only the first
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step as there are many remote communities with limited or no communications
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capabilities. With interWave’s complete wireless cellular and broadband
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solution, we are able to increase our service offering to support not only
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mobile voice services, but also SMS, data through GPRS and roaming
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capabilities. We believe that an expanded telecommunications network will
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create new markets, new business opportunities and make the FSM a better and
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safer place in which to live.”
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FSM islands are scattered over 1 million square miles, yet total land area
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is only 271 square miles. Great distances between islands and their isolated
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location in the Pacific Ocean coupled with mountainous terrain and dense
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jungle add to the difficulties in deploying cost-effective national
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communications infrastructure.
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“The flexibility and modular components of interWave’s wireless network
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solutions were two of the main reasons we were intrigued with their
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solution,” said Dr. Paul Carter, president of Global Wireless Solutions, a
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company retained by FSM to review network solutions for their unique
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situation. “Additionally, interWave has a definitive 2.5G (GPRS) and 3G
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technology path in place, which is important to our clients as they continue
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to evolve their services to meet the ever growing technology demands.”
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FSM Telecommunication’s future plans include expansion to FSM’s remote outer
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islands where roughly 21 percent of the population currently live and are
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without telephone services.

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