With those words, Williams in January 1998 announced it is
re-entering the wholesale network services business with aggressive plans to re-establish itself as the carriers’ network of choice.

The announcement, which coincides with the expiration of the non-compete agreement made three years ago when we sold our national fiber network, heralds a huge opportunity. This time, however, the wholesale market is broader, demand is growing faster, and our network capacity, technology and menu of services are much greater.

Williams’ communications group reported revenues of $1.4 billion in 1997, with a $55.7 million operating loss due partly to $49.8 million of fourth-quarter 1997 charges. Financial results were overshadowed by rapid development of a new network and a broadening of services and capabilities.

Here’s a look forward at our primary communications businesses:

*Communications Solutions, which provided solid earnings in 1997, should significantly increase revenues and operating profit in 1998. This business doubled in size in second-quarter 1997 by acquiring Nortel’s distribution unit, becoming the nation’s largest independent distributor and integrator of communications hardware for businesses.

*The Network unit should solidly impact operating profit in 1999. In 1998 we will finish adding more than 7,000 new route miles of fiber through construction, joint ventures and swapped-use deals. Planned capital expenditures and investments for Network in 1998 are $765 million.

* Network Applications is expected to increase revenues and narrow the gap toward profitability in 1998, due to its maturing operations and the absence of the fourth-quarter 1997 charges. Network Applications is the market leader in the transmission of video programming and the distribution of advertising for television.

When we sold our highly respected network business in 1995, we retained a nationwide fiber for multimedia use, such as video and Internet transmissions. By year-end 1998 we will have a fiber network of 18,000 miles, with 6,000 additional miles planned for 1999.

Demand for bandwidth is experiencing unprecedented growth, and competition for that market is increasing rapidly. Our goal of being the high-quality, low-cost provider of wholesale capacity is strongly supported by our next-generation technology, unsurpassed construction skills, use of Williams’ extensive rights of way, and systems integration capabilities.

Today, Williams’ communications business is a powerful and growing provider of integrated solutions packaged across business units under a single brand identity — Williams.