TELIGENT INC

TELIGENT INC

Previous company name

Name change date

Company Overview
Teligent Inc. is an American-based company that provides local and long distance high speed data and Internet services to small and medium-sized companies. The company has its registered office in Herndon, Virginia. It was founded in 1996 to provide fixed wireless services.
The company’s audio and Internet conferencing services enable customers to meet and collaborate remotely to effectively conduct business anywhere, anytime. With an extensive network of IP gateways, international gateways, domestic switches, and ownership in undersea fiber optic cables, the company provides its services through a flexible network of owned/leased facilities, operating and termination agreements, and resale arrangements.
The company uses its own high-frequency microwave and broadband SmartWave networks to offer local and long-distance phone services, Internet access, World Wide Web hosting, and similar services to small and mid-sized businesses in more than 40 markets across the country, as well as around the world via international partnerships. Its international reach includes Argentina, Spain, France, and Germany. Its U.S. offices are located in Austin, Dallas, Houston, and San Antonio, Texas; Los Angeles, California; New York, New York; Tampa, Florida; and Washington, D.C.
The company aims to be a leading provider of Internet Protocol (IP) and communication services, including voice, data and Internet services to its targeted ethnic markets, comprised of ethnic communities from the Asia Pacific Rim, the Middle East and North Africa, Russia and Central Europe and Latin and South America.
The company struggled with huge debt as intense competition and falling prices undercut profitability. It filed for Chapter 11 in 2001 but emerged a year later, reorganized and debt free. In early 2005, the company was acquired by First Avenue Networks, Inc. of Charlottesville, Virginia specifically for the latter company’s 24GHz spectrum licenses, fixed wireless broadband operations and radio assets.
Business Summary
Teligent, Inc. is a full-service communications company that offers its services primarily through its own facilities. Teligent offers business customers local and long distance telephony, high-speed data and Internet access services over its digital SmartWave local networks. The Company’s SmartWave local networks combine advanced fixed wireless technologies with traditional broadband wireline technology. The Company offers commercial service using its SmartWave local networks in 43 major market areas. On May 21, 2001, the Company and all of its domestic subsidiaries filed voluntary petitions for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. On September 12, 2002, the Company’s Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York, became effectivem thereby marking Teligent’s formal emergence from Chapter 11.
Description and history
Teligent, Inc., incorporated in November 1997, is a full-service communications company that offers its services primarily through its own facilities. Teligent offers business customers local and long distance telephony, high-speed data and Internet access services over its digital SmartWave local networks. On May 21, 2001, the Company and all of its domestic subsidiaries filed voluntary petitions for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. On September 12, 2002, the Company’s Plan of Reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of New York, became effectivem thereby marking Teligent’s formal emergence from Chapter 11.

The Company’s SmartWave local networks combine advanced fixed wireless technologies with traditional broadband wireline technology. The Company’s digital wireless technology provides many of the advantages of fiber, such as the ability to transport information within a network at high speeds (up to a speed commonly known as OC-3 speed) via radios that transmit from one location to another single location (known as point-to-point transmissions), or up to a speed commonly known as DS-3 speed from one location to multiple locations (known as point-to-multipoint transmissions). The Company is offering commercial service using its SmartWave local networks in 43 major market areas.

Teligent recently announced a new initiative to provide wholesale telecommunications services in each of its 43 markets. In nine of these markets, the Company’s sales efforts will be focused solely on acquiring new customers for its wholesale telecommunications service. The Company expects that the primary market for its wholesale services will be carriers and corporate customers. Services that may comprise the core of Teligent’s wholesale initiative include: the sale of excess capacity on the Company’s SmartWave local networks to carriers that have customers located in buildings on its network, and the provision of telecommunications services using the Company’s wireless infrastructure on a build-to-suit basis.

The Company offers an integrated package of services, including local and long distance services (domestic and international) as well as Internet services, broadband access, voice mail, conference calling, call forwarding and other advanced communications services.

The Company provides its customers a wide range of local telephone services. These services include basic local services, access to long distance and local access and transport areas, known as LATAs, switched and dedicated lines, direct inward dialing, Digital Private Branch Exchange, Premium Rate Interface, voice mail and custom calling services.

Teligent offers long distance services that the Company seeks to sell to customers as a part of a product bundle, through agreements with national long distance companies. These long distance services include domestic intrastate, interstate and international calling, toll-free services (800, 888, 877 and 866), calling card, and conference calling and other enhanced services. When its coverage area spans multiple LATAs, the Company uses its own facilities to provide inter-LATA long distance service.

Using its high capacity SmartWave local networks, which allow large volumes of information to be transmitted at high speeds, the Company offers transport for Internet services from its customers to the Internet through Teligent’s nationwide network. The Company currently offers Internet services on its own facilities, including access services ranging from 128 kilobits per second (kbps) to 45 megabits per second (Mbps), Domain Name Serving (DNS), e-mail and basic Web hosting.

Teligent has established the basic infrastructure required to offer its own Internet services as a provider (ISP), and the Company is in the process of migrating customers to that service. The Company has completed new data centers in Washington, D.C., and Chicago and is carrying Internet traffic through its ISP facilities in all of its market areas. Teligent’s data centers provide entry points to the Internet and allow the Company to provide its customers with access, domain name services, e-mail and basic Web hosting services directly through its servers. As part of its Internet and data initiatives, the Company also offers SmartWave DSL, a digital subscriber line service that permits sharing of network assets by more than one customer to reach the Internet and is thus competitively priced for customers who do not need access through dedicated facilities. SmartWave DSL utilizes a Digital Subscriber Access Line Multiplexer (DSLAM) in the customer building to deliver Internet access to customers. The DSLAM equipment deployed allows the Company to deliver speeds up to 1.5 Mbps to these customers. As the needs of its SmartWave DSL customers increase, the Company can upgrade them to dedicated access services.

The Company’s wholly owned subsidiary, Teligent International, Ltd., is developing fixed wireless telecommunication networks in select international markets through joint ventures with established international carriers. These joint ventures plan to provide cost-effective broadband access and integrated telecommunication services, primarily to businesses in these international markets. The Company’s international joint Ventures are Mannesmann Arcor, Germany; Jazztel, Abengoa, Spain; CCT, Hongkong; Telecom Ventures, Argentina, and LD Com, Artemis, France.

In each country, the joint venture owns the fixed wireless network assets and is responsible for the design, implementation and operations of the network within that country. The joint ventures intend to manage network utilization by offering multiple product bundling and taking advantage of distribution opportunities. Accordingly, the joint ventures’ primary revenue source will be from providing wholesale fixed wireless services to the Company’s co-venturers and other wholesale customers for resale to their customers.

Local Telephone Services

The Company provides its customers a wide range of local telephone services. These services include basic local services, access to long distance and intra-local access and transport area (LATA), switched and dedicated lines, direct inward dialing, Digital Private Branch Exchange, Premium Rate Interface, voice mail and custom calling services.

Long Distance

Teligent offers long distance services, which the Company seeks to sell to customers as part of a product bundle, through agreements with national long distance companies. These long distance services include domestic intrastate, interstate and international calling, toll-free services (800, 888 and 877), calling card and conference calling and other enhanced services. When its coverage area spans multiple LATAs, the Company uses its own facilities to provide inter-LATA long distance service.

The Company faces local and long distance competition from AT&T, MCI WorldCom and Sprint, among others.

Internet and Data Services

Using the high bandwidth capacity of its SmartWave local networks, which allows large volumes of information to be transmitted at high speeds, the Company offers transport for Internet services from its customer’s premises to the Internet through Teligent’s central office in each city it offer services. Current Internet services that the Company offers on its own facilities include Domain Name Serving (DNS), e-mail, basic Web hosting and transit facilities. The Company also offers dedicated private line services, providing local dedicated data access circuits as well as the long distance portion of those circuits. These links are used to connect offices for file sharing, e-mail and workgroup applications.

Through its wholly owned licensed subsidiaries, the Company holds 24 GigaHertz (GHz) fixed wireless digital message service (DEMS) licenses granted by the Federal Communications Commission (FCC). The Company’s DEMS licenses cover 74 major market areas, comprising more than 750 municipalities in the United States, including 320 to 400 MegaHertz (MHz) of spectrum in 27 of the 35 most populous market areas in the United States, and at least 80 MHz of spectrum in 47 other major market areas. These licenses, which were previously granted for operations only in the 18-GHz band, were not subject to grant by auction. The majority of the 24 GHz licenses were either transferred or assigned to Teligent pursuant to FCC authority. Teligent, through certain of its subsidiaries, also holds common carrier microwave licenses at other frequencies for use in its business.

Teligent is seeking to become a provider of fixed wireless services internationally and has been granted, or the joint ventures to which the Company is a party have been granted, spectrum licenses in Germany, Hong Kong, Argentina and Spain. The Company also has submitted, through a joint venture, an application for spectrum licenses in France and is participating in a spectrum auction in Austria. Additionally, Teligent intends to apply or bid for other international rights.

Founded to provide fixed wireless services

Business Line
Provides local and long distance high speed data and Internet services to small and medium-sized companies
Subsidiary

Advisor
ERNST & YOUNG LLP
IPO date
11/1997
US SIC Code
4813
Company Address
Suite 400
8065, Leesburg Pike
City province or state postal code
22182, VIENNA, VA
Phone: +1 703 762 5100
Fax: +1 703 762 5200
Country address: UNITED STATES OF AMERICA
Website url: www.teligent.com