Telegroup Expands Spectra Service to U.K. and Denmark
More Customers Can Experience Ease of Low-Cost International and
National Long Distance Dialing
Worldwide Capacity Increases Will Also Benefit Customers
FAIRFIELD, Iowa, July 7, 1998 -Telegroup, Inc. (Nasdaq: TGRP), a leading global telecommunications provider, continues to
implement its strategy of growing in telephone markets around
the world by offering its business and residential customers new
value added services. According to plans announced earlier this
year, the company is rolling out its leading national and international
long distance service, Spectra, in the United Kingdom and Denmark
this month. Telegroup also continues to add capacity in order
to better serve its customers worldwide. The company recently
purchased significant capacity on two cable systems, one linking
the U.K. and Germany, and the other Australia, New Zealand, and
the United States; and added much needed capacity in the Netherlands.
Spectra allows Telegroup customers to make national as well as
international long distance calls easily and cost-effectively,
without having to dial long access numbers or personal authorization
codes. Because it permits domestic long distance dialing, Spectra
reaches a much larger customer base than services which permit
only international dialing.
Telegroup’s Spectra has already proven successful in Australia,
New Zealand, and the Netherlands. When the service was introduced
into the Netherlands (where it has been marketed under the brand-name
"Telegroup 1633"), customer response to Telegroup 1633 was so
overwhelming that KPN Telecom, the Dutch PTT, initially could
not deliver enough capacity to keep up with the demand.
Over the last month, Telegroup has received more capacity to provide
Spectra to enthusiastic customers. "The Dutch phone company has
freed up an additional eight E1 circuits, thus boosting our monthly
Spectra traffic in the Netherlands to 12 million minutes. Later
this summer, we'll be adding another 38 E1s, virtually tripling
our present total capacity. This increase in capacity permits
us to better meet demand and provide better service for our customers.
This will generate additional revenues by not only servicing existing
customers better but allowing us to add new ones," said Dr. Paul
Gelderloos, Telegroup’s Country Manager in the Netherlands.
Telegroup is introducing its Spectra service to new markets as
well, initially offering Spectra in both Denmark and the U.K.
Telegroup has completed its network interface with TeleDanmark
(TDK), the Danish PTT, and will be able to turn up "Telegroup
Spectra 1047" later in July. Spectra will be available in the
U.K. later this month as well.
In other efforts to better service its customers worldwide, Telegroup
continues to invest in additional circuits in key markets. In
the Pacific Rim, Telegroup has recently purchased capacity exceeding
an STM-1 on the Southern Cross transoceanic cable system connecting
Sydney, Auckland, and the U.S. In Europe, the company has become
co-owner of UK-Germany 6, a new cable system linking the U.K.
with Germany, which will be ready for service by the end of 1998.
UK-Germany 6 will enable Telegroup to originate and terminate
calls on its own network in Germany, which accounts for one-third
of the $170 billion yearly European telecom market. As co-owners
of the circuit, Telegroup can participate in any increase of capacity
on the cable system. UK-Germany 6 will complement other recent
Telegroup network acquisitions, including a Nortel GSP switch
in London and an STM-1 on the cable system Gemini, which connects
Telegroup's international gateway hubs in London and New York
City.
Telegroup is a leading global carrier of long distance telecommunications
services to over 200 countries. Telegroup offers services to small-
and medium-sized businesses and residential customers. The company
also provides value-added wholesale services to over 40 domestic
and international telecommunications carriers. Telegroup is recognized
as having one of the most comprehensive global sales, marketing,
and customer service organizations of the emerging multinational
carriers. The company operates a digital, facilities-based network,
the Telegroup Intelligent Global Network®, which consists of a
central operating center, twenty-one switches, five enhanced service
platforms, owned or leased capacity on ten digital fiber-optic
cable links, and leased parallel data transmission capacity. Telegroup
had revenues of $337 million in 1997.
Application of the Safe Harbor of the Private Securities Litigation
Reform Act of 1995: This news release contains statements which
are not historical facts and may be considered forward-looking
statements, within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of
1934, including expansion of Telegroup’s network, improvement
of Telegroup’s competitive position, reduction of Telegroup’s
costs, and achievement of Telegroup’s business plan. Telegroup’s
actual results might differ materially due to numerous factors
including, without limitation, the Company’s success in developing
its business plan, and acquiring additional financing needed to
meet this plan, foreign currency fluctuations, termination of
certain operating agreements, and changes in tax law. Those and
other risks are described in the Company’s filings with the Securities
and Exchange Commission.
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