@Home Network (Redwood City, CA) cut a long-term deal with AT&T (Morristown, NJ) to create a nationwide Internet protocol network using AT&T`s dense wavelength-division multiplexing (DWDM) backbone network. The new backbone facility is scheduled for deployment in mid-1999. Under the agreement, AT&T will initially provide @Home with two OC-48 (2.5-Gbit/sec) channels over each route of a 15,000-mi DWDM optical network. The agreement also provides for significant capacity expansion and co-location space in AT&T points of presence.