SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (date of earliest event reported) September 21, 1999
ADELPHIA COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 0-16014 23-2417713
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
One North Main Street - Coudersport, PA 16915-1141
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (814) 274-9830
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Item 5. Other Events.
(a) On September 21, 1999, Adelphia's majority owned subsidiary,
Hyperion Telecommunications, Inc. (also known as Adelphia Business Solutions),
announced its proposed national expansion into the western half of the United
States. The announcement was contained in a press release, a copy of which is
attached to this Form 8-K and filed herewith under Item 7 as Exhibit 99.01.
(b) Daniel R. Milliard, the president, chief operating officer and
secretary for Hyperion, a senior vice president and secretary for Adelphia and a
member of the board of directors for both Adelphia and Hyperion, has resigned
his officer positions with both companies and their subsidiaries effective
September 20, 1999 to take a new position elsewhere. Mr. Milliard will continue
to serve on the board of directors of both Adelphia and Hyperion until the
upcoming annual stockholder meeting for each on October 25, 1999.
Item 7. Financial Statements and Exhibits
Exhibit No. Description
99.01 Press Release dated September 21, 1999 (Filed Herewith).
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SIGNATURE
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.
Date: September 27, 1999 ADELPHIA COMMUNICATIONS
CORPORATION (Registrant)
By: /s/ Timothy J. Rigas
Timothy J. Rigas
Executive Vice President, Treasurer
and Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99.01 Press Release dated September 21, 1999 (Filed Herewith).
Exhibit 99.01
FOR IMMEDIATE RELEASE
CONTACT:
Tim Rigas
Chief Financial Officer
814/274-9830
Tom Cady
Vice President Marketing & Sales
412/221-1888
ADELPHIA BUSINESS SOLUTIONS ANNOUNCES
NATIONAL EXPANSION
COUDERSPORT, Pa., September 21, 1999 - Adelphia Business Solutions
today announced the strategic decision to extend its fiber optic network into
the western half of the United States, which will enable the Company to offer
its integrated communication services to businesses nationwide. This will allow
Adelphia Business Solutions to offer services in approximately 200 markets
throughout the country by the end of 2001. These markets represent approximately
65% of the entire United States business telecommunications market.
The expansion began in 1998 through execution of several indefeasible
rights of use (IRU) agreements totaling over 9,500 long haul fiber optic route
miles throughout most of the eastern half of the United States. This further
geographic expansion contemplates IRU's totaling approximately 10,000 long haul
fiber optic route miles through out the western United States and an additional
10,500 long haul route miles throughout the central United States and which will
inter-connect the network throughout the country. This strategic expansion will
increase Adelphia Business Solutions' addressable market from 35% to 65% of the
business access lines in the United States, at an estimated capital cost of $800
million, exclusive of the long haul network, and will increase markets served
from 75 to 200. The 30,000 mile long haul network connecting these markets will
cost approximately $250 million over the next two years.
"This expansion allows us to rapidly roll out new services, resulting
in better service to our customers, while enhancing long term shareholder
value," said James Rigas, CEO of Adelphia Business Solutions. Customers across
the country will benefit from the value of our state-of-the-art technology and
extensive portfolio of services. In addition, utilizing this nationwide network
system will result in better operating margins than a strategy more dependent on
other carriers' networks."
The network will allow Adelphia Business Solutions to transport and
terminate the vast majority of its customers' long distance and internet traffic
on its owned facilities. Furthermore, the network provides the company with the
enabling architecture to extend service offerings to include enhanced data
applications such as frame relay, ATM and VPNs. Finally, the network allows
several company markets to be served from one switching/central office location,
resulting in better capital utilization, and provides the foundation for packet
switched IP telephony network architecture in the future. Adelphia Business
Solutions is also implementing several new technologies to enhance the
capabilities of its network. The company is currently deploying Dense Wavelength
Division Multiplexing (DWDM) and network-core and -edge ATM devices to make more
effective use of its network, allowing customers to carry out more
communications applications simultaneously. The company is also developing a
variety of mediums to deliver last-mile connectivity to customers. Fiber-line,
fixed wireless and Digital Subscriber Line (DSL) technologies will give Adelphia
an array of broadband access options to satisfy customer requirements.
-more-
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About Adelphia Business Solutions (NASDAQ: HYPT)
Adelphia Business Solutions is currently the marketing identity of Hyperion
Telecommunications, Inc. (NASDAQ: HYPT). Hyperion was formed in 1991 by
Adelphia Communications Corporation (NASDAQ: ADLAC), one of the nation's largest
cable television providers, to provide integrated communication services to
business customers. Hyperion Telecommunications, Inc. intends to formally change
its legal name to Adelphia Business Solutions, Inc. following its upcoming
annual stockholder meeting on October 25, 1999.
By the year 2001, Adelphia Business Solutions will serve approximately 200
cities throughout the United States over its fully redundant, 33,000-mile local
and long-haul fiber optic network. This network serves as the backbone for the
company's full line of communication service offerings, including local and long
distance voice services, messaging, high-speed data and Internet services. For
more information about Adelphia Business Solutions, visit the company's web site
at http://www.adelphia-abs.com.
# # #
(Notation: Except for factual information contained in this news release, any
forward looking statements concerning future plans for expansion and completion
of Adelphia Business Solutions' network are based on current estimates and
projections and actual results could materially differ from those statements.)
