SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported) (September 16, 1996) September 20, 1996
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CAI WIRELESS SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
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Connecticut 0-22888 06-1324691
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(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
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18 CORPORATE WOODS BLVD., ALBANY, NY 12211
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (518) 462-2632
(Former name or former address, if changed since last report)
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Item 5 - OTHER EVENTS
A. CAI Wireless Systems, Inc. ("CAI" or the "Company") announced on
September 16, 1996 that it will conduct a market trial of its high-speed
wireless Internet access service in Rochester, NY, beginning by the end of
September. CAI plans commercial rollout of the service as early as the first
quarter of 1997, subject to final regulatory approval.
Using General Instrument Corporation's SURFboard cable modems and
associated network equipment, CAI expects its wireless Internet-access network
to transmit data at raw speeds of 27 megabits per second (Mbps). Developed by
General Instrument for wireless cable networks like those operated by CAI, the
modems are significantly faster than the T1 connections commonly used by large
businesses and traditional computer modems, whose top speeds are 28.8 kilobits
per second (Kbps).
CAI has ordered the GI modems and related network equipment for this
market trial. The CAI system will be capable of serving thousands of customers
from its transmitter location in Rochester.
CAI's Internet-access service will be provided using the existing MMDS
system here, which transmits video and data signals on the 2.5 to 2.7 gigahertz
(Ghz) portion of the electromagnetic radio spectrum. The system was originally
designed by CAI to deliver television programming. The market trial
participants will include residential and business users and is expected to
last approximately three months.
A traditional telephony modem is required to send outbound signals
from the customer's personal computer to CAI's server. Overall speed is not
hampered because the heavy data transfer tends to originate at the web server,
which transmits the data through the air via CAI's wireless frequencies to
individual computer users. For most consumers, the data transmitted back to
the web server is modest by comparison, and thus, overall speed of the exchange
is not significantly diminished by the telephone return path.
B. The Company announced on September 20, 1996 that all of its operating
subsidiaries would subcontract all of their installation and service work to
outside contractors in an effort designed to cut overhead costs and promote
safety. The decision by CAI to outsource the installation and service work
will result in a company-wide elimination of approximately 54 jobs or 18% of
its total workforce.
This step will allow CAI to reduce the costs associated with these
installation and related services, resulting in a substantial savings over time
by eliminating associated fixed costs, including vehicles and other equipment,
space needs and personnel. CAI has made efforts to have its existing
contractors offer employment to all of the employees who will lose their jobs
because of this cost-cutting measure, and expects that substantially all of
such employees will be placed with these contractors.
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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 hereunto duly authorized.
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SIGNATURE TITLE DATE
/S/ JAMES P. ASHMAN Executive Vice President, Chief September 20, 1996
James P. Ashman Financial Officer and Director
(Principal Financial Officer)
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