FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of: August 1998
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TRICOM, S.A.
(Translation of registrant's name into English)
Avenida Lope de Vega No. 95, Santo Domingo, Dominican Republic
(Address of principal executives offices)
Indicate by check mark whether the registrant files or will
file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
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Indicate by check mark whether the registrant by furnishing
the information contained in this Form is also thereby furnishing
the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes No X
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If "Yes" is marked, indicate below the file number assigned
to the registrant in connection with Rule 12g3-2(b): 82-
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FOR IMMEDIATE RELEASE
FOR FURTHER INFORMATION CONTACT:
Jaime Garcia
TRICOM, S. A.
Ph (809) 476-4054
e-mail: [email protected]
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Robin Weinberg
DEWE ROGERSON
Ph (212) 688-6840
e- mail: [email protected]
TRICOM SIGNS CONTRACT WITH MOTOROLA
FOR 150,000 LINES CDMA BUILDOUT
ANNOUNCES TIMETABLE FOR DEPLOYMENT
AUGUST 18, 1998 SANTO DOMINGO, DOMINICAN REPUBLIC - TRICOM,
S. A. (NYSE: TDR), a diversified telecommunications services
provider, announced today the selection of Motorola, Inc's
Cellular Infrastructure Group (CIG) (NYSE: MOT) as the
infrastructure provider of CDMA (Code Division Multiple Access)
technology and equipment for its WLL (Wireless Local Loop) and
PCS buildout plans. The four year contract provides for the
installation of 150,000 wireless subscribers. The selection of
Motorola CIG's WiLL(R) technology was the last step necessary in
order for the Company to deploy the system.
The WiLL(R) system will accelerate penetration of the local
access market in the Dominican Republic at significantly lower
costs compared to deploying copper lines. The Company expects to
considerably increase its market share as it will now have the
ability to provide telephony services to large areas, enabling it
to use mass marketing techniques to target underserved markets.
There are currently approximately 750,000 local access lines in
service in the Dominican Republic, representing a penetration
rate of only 9%.
"Our goal in selecting to grow with the WLL technology is to
offer our customers a reliable, cost effective product,
substantially reducing the waiting period for a telephone line"
said Arturo Pellerano, President and Chief Executive Officer of
TRICOM. "In the highly underserved Dominican market, where only 9
out of every 100 persons have a home telephone, this should prove
to be a strong catalyst for market growth and increased
penetration."
CDMA technology uses codes to differentiate subscribers' phone
conversations, allowing for the most efficient use of the radio
spectrum, at the same time providing enhanced voice quality,
comparable to traditional copper wire systems. Among the
benefits of this technology are its ability to offer ubiquitous
coverage, rapid installation, a scalable network with
redeployable equipment, reduced maintenance costs, and mobility.
"TRICOM has consistently been a leader in providing innovative
services," said Woody Ritchey, Vice-President and General Manager
of Motorola CIG's Americas Cellular Infrastructure Group.
"Motorola's CDMA WiLL(R) system provides a highly effective
platform for TRICOM to quickly offer its customers high-quality
digital services on a larger geographic scale than would
otherwise be possible."
The Company expects to have its Wireless Local Loop in operation
on a limited basis, in the capital city of Santo Domingo by the
first quarter of 1999, and plans to expand into five other cities
during the rest of 1999. The Company anticipates that the first
phase of the Wireless buildout plan will be completed at a cost
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of US$12.6 million, and will deploy capacity to connect
approximately 36,000 wireless subscribers by the end of 1999.
Concurrently with the Wireless Local Loop service, the Company
will be able to provide customers with a fully mobile PCS
offering.
The costs to the Company of installing local access lines using
WLL technology are estimated to be approximately 20% less than
the costs of traditional copper line installation. Additional
savings are also expected in the maintenance costs, as well as on
the operational expenses required for installation and
redeployment.
The total amount of the contract, US$52 million is considerably
lower than was originally anticipated by the Company, and will be
invested in equal parts, over the next four years. The deployment
of the WLL is expected to take place in three stages over the the
same period. The first stage, covering 60% of the capital city of
Santo Domingo, with a population of approximately 2.1 million, is
expected to be operational by the end of 1998. The second stage,
covering five additional cities, comprising a total population of
approximately 1.1 million, should be operational by the end of
the second quarter of 1999. The third and final stage, to be
implemented over the course of the following two years, will
increase coverage to seven additional cities, at the same time
increasing capacity in the previously covered cities. During
these three stages, Motorola will provide TRICOM with
installation teams for each network component, staff training,
and network testing. Motorola will also provide TRICOM with
dedicated, in-country technical support and maintenance, and
other services.
MOTOROLA, INC. is one of the world's leading providers of
wireless communications, semiconductors, and advanced electronic
systems, components and services. Motorola's 1997 sales were
$29.8 billion.
TRICOM is the sole alternate provider of diversified
telecommunications services in the Dominican Republic. Since it
began operations in 1992 as a low-cost international long
distance service provider, the Company's services have expanded
to include basic local service, national long distance, cellular,
paging and internet access. TRICOM is the first Dominican company
to issue securities on the New York Stock Exchange.
# # #
This news release contains certain "forward-looking statements"
(as described in Section 21E of the Securities Exchange Act of
1934) that are based on the beliefs of the Company's management,
as well as assumptions by, and information currently available
to, the Company's management. The words "anticipates,"
"believes," "estimates," "expects," "plans," "intends" and
similar expressions are intended to identify these forward-
looking statements, but are not the exclusive means of
identifying them. These forward-looking statements reflect the
current views of the Company or its management and are subject to
certain risks, uncertainties and contingencies which could cause
the Company's actual results, performance or achievements to
differ materially from those expressed in, or implied by, these
statements. In particular such risks include, but are not
limited to, the following factors: competition; declining rates
for international long distance traffic; opposition to increased
rates for basic local service; the Company's significant capital
expenditure requirements and its need to finance such
expenditures; the inability of the Company to expand its local
access line network in a timely manner and within the amount
budgeted for such capital expenditure program; the inability of
the Company to manage effectively its rapid expansion; the
continued growth of the Dominican economy, demand for telephone
services in the Dominican Republic and moderation of inflation;
and the continuation of a favorable political and regulatory
environment in the Dominican Republic.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
TRICOM, S.A
Dated: August 18, 1998 By:/s/ Carl H. Carlson
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Carl H. Carlson
Executive Vice President
and Member of the
Office of the President
