Press Release

An initiative to improve Berkshire County's
telecommunications infrastructure
FOR IMMEDIATE RELEASE: February 4, 2000

Berkshire Connect Inks Pact with Telecom Provider,
First-of-its-Kins Partnership Bridges Digital Divide

Effort by local consortium of business, cultural, academic and community leaders to aggregate demand to benefit all users results in deal introducing competition to the Berkshire market.

New, equal-access, countywide, high-speed network to be built with 100% private financing, creating millions of dollars in potential savings for users.

Gov. Cellucci, Sen. Kerry & Sen. Kennedy praise Berkshire Connect approach as an example of "local solutions made by local people" that can serve as a national model for other under-served regions.

(Pittsfield, MA) - In a major economic breakthrough, Berkshire County has transformed itself from an under-served region to a hotbed of low-cost, equal-access telecommunications with today's announcement of an agreement between a local consortium and a competitive service provider to establish a new high-speed telecommunications network for participating users throughout the county. Berkshire Connect members from Clarksburg on the Vermont border to Sheffield on the Connecticut border will be able to receive prices for T-1 access at rates that are up to 70% less than they were when Berkshire Connect was founded and that are less dependent on distance or volume.

The partnership between Berkshire Connect - a consortium of business, cultural, academic and community leaders - and Global Crossing Ltd. and Equal Access Networks, Inc. is the first of its kind in the nation, one which creates a market by aggregating demand from all sectors and from all levels of users and which does not rely on public infrastructure investment. T-1 rates in Berkshire County are now comparable to rates in Boston or New York.

The arrangement was announced this morning at a reception held at Berkshire Life Insurance Company in Pittsfield attended by MA Gov. Paul Cellucci, U.S. Sen. John F. Kerry, U.S. Rep. John Olver, the Berkshire state legislative delegation, more than 100 local supporters and, via satellite, by U.S. Sen. Edward M. Kennedy. The agreement will make more reliable, faster telecommunications service available almost immediately to the entire county and will provide a price for T-1 internet access with cost savings of up to 50% off current rates. The agreement unleashes a new level of competition waged on the basis of cost, quality, and service in the telecommunications marketplace throughout the Berkshires.

As a result of the Berkshire Connect endorsement, Global Crossing, Ltd. and Equal Access Networks, Inc. have agreed to invest several million dollars in the construction of a new facilities based network, providing potentially unlimited options for the full range of telecommunications services including voice, internet, data, video and others. The endorsement was provided by the Berkshire Connect Task Force on February 1st, definitive agreements have been finalized and await final execution.

"Berkshire Connect's goal has not only been to stimulate the market to provide better service at a lower cost, but to nurture economic growth and cultural and educational development in Berkshire County through the use of advanced telecommunications services," said Donald Dubendorf, a Williamstown attorney and Chair of the Berkshire Connect Steering Committee.

The Berkshire Connect Task Force was formed in late 1997 to address the need for high quality, reliable, state-of-the-art and cost-effective telecommunications services for large and small users countywide. At the request of the Berkshire County legislative delegation, the Berkshire Regional Planning Commission (BRPC) and the Massachusetts Technology Collaborative (MTC) organized the initiative and provided consulting and technical assistance throughout the process. The initiative was funded through a state grant made by Gov. Paul Cellucci in November 1997, and through subsequent appropriations approved by the Administration and the state Legislature.

"The inclusive, countywide nature of the Berkshire Connect approach was purposely chosen by the Task Force to provide access for organizations throughout the county at a uniform price," said Nathaniel W. Karns, Task Force Chairman and Executive Director of BRPC. "This process has brought the county together in a profound way and is a good example of a regional collaboration that worked. The benefits to the county, especially in the marketing and competitive advantages that the establishment of state-of-the-art infrastructure brings, cannot be overstated."

The absence of competition in the Berkshire telecommunications market and mediocre service compared to other regions of the state were motivating factors in the start-up of the project. "There was no real market in 1997 when Berkshire Connect first began," said Dubendorf. "But the choice we made at the time was not to use our resources to artificially create a market, but to leverage our public dollars to organize demand and work with the private sector to invest in the solution."

The 12-member, volunteer Steering Committee of the Berkshire Connect Task Force began the process of selecting a partner in June and July of 1999 with an initial round of meetings with numerous telecommunications providers. In July, the Steering Committee requested proposals to provide high quality, low cost, reliable data transport service to all geographic regions of the County. In August, the Steering Committee received proposals from seven major telecommunications providers. The Global Crossing/Equal Access proposal was selected after an extensive review process and offers a countywide, facilities-based solution to the county's telecommunications needs, closely representing the concept outlined in Berkshire Connect's Summary Business Plan.

"Berkshire Connect is a good example of local solutions made by local people with the encouragement and support of their government," said Governor Cellucci. "This approach should serve as a model for other regions of our state as they struggle to offer residents access to cutting edge technology at an affordable price. With this initiative, Berkshire County can reclaim its place in today's vibrant Massachusetts economy."

"The critical legacy of Berkshire Connect is not primarily the technical solution, not even the installation of a world-class telecommunication network in a region which others had written off," said Joseph D. Alviani, President of the Massachusetts Technology Collaborative. "The sustainable legacy is that a community, due for the most part to the civic entrepreneurs of this region, overcame its own doubts, disappointments, divisions and skepticism to achieve a result the positive ramifications of which will in the future touch and provide opportunity for every one of its citizens.

"What this means is that this region which has suffered a disproportionate share of economic decline and abandonment can now look forward with the knowledge that there is no problem, however large or apparently intractable, that it cannot address and resolve successfully when it works in concert."

"Our initial plans were to build a fully redundant broadband digital wireless infrastructure backed up by leased Bell Atlantic DS3's," said Daniel J. Kelley, Vice President for Business Development for New England Digital Distribution. "However, due to high in-County demand, we now have plans to triple the capacity and include a combination of leased fiber and broadband digital wireless to create a fully redundant, diverse routed, totally independent Infrastructure network. I might add, our planned investment in the County has grown proportionately."

Steering Committee members acknowledged the state's support at today's event. "We would not be in the position we are today with the tireless efforts of the Berkshire Legislative Delegation and the Cellucci/Swift Administration," said Dubendorf. "We thank them all for making this possible. Without their assistance, we would still be struggling with high prices and poor service."

The Massachusetts Technology Collaborative is an independent economic development organization established by the state that promotes sustainable growth and works to strengthen the Commonwealth's Innovation Economy through the advancement of technology-based industry in Massachusetts. The Collaborative supports regional technology-based clusters, publishes research that fosters a better understanding of the forces that shape the economy, and serves as a public policy laboratory for technology-related initiatives.

The Berkshire Regional Planning Commission is a substate governmental agency established under Massachusetts General Laws to provide regional planning services in Berkshire County, Massachusetts. BRPC currently has active programs in the areas of economic development, environmental, land use and transportation planning throughout the Berkshires and provides technical assistance in a variety of areas to the 32 local governments in the region.
Equal Access Networks, Inc. designs, engineers, builds and operates independent broadband infrastructure networks that serve businesses and institutions in under-served markets.

Global Crossing Ltd. (Nasdaq: GBLX) is building, and offering services over, the world's first global fiber optic network with 97,200 announced route miles, serving five continents, 24 countries and more than 200 major cities. The Global Crossing Network and its telecommunications and Internet product offerings will be available to over 80% of the world's international communications traffic. Among the brands are some of the largest and most densely trafficked sites on the Web, including Yahoo!, The Motley Fool, Ziff Davis, MP3.com and eToys. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown, New Jersey; and Rochester, New York.