(COMTEX) B: ClearWorks.net Signs Its First Contract For Bundled Digit
B: ClearWorks.net Signs Its First Contract For Bundled Digital Services In
Multiple Dwelling Unit Market
HOUSTON, Jun 10, 1999 (BUSINESS WIRE via COMTEX) --
Company's Conservative Goal is to Reach 1.5% Market Share in the
$11.9 Billion MDU Bundled Digital Services(SM) Marketplace
Houston-based ClearWorks.net (OTC BB:CLWK) announced today that it has
signed an agreement with Houston-based Charterwood Associates Ltd. to
provide its package of Bundled Digital Services(SM) in a new 156-unit
Houston apartment community called Charterwood. This is the first time
ClearWorks.net is providing its services for the multiple dwelling unit
(MDU) market place. The lifetime value of this first contract is
estimated to be $5.4 million in revenues.
ClearWorks builds a fiber-optics network into the new apartment
community and then pre-wires every unit in for a full complement of
Bundled Digital Services(SM). Residents in ClearWorks-wired
neighborhoods are getting Internet connections at a bi-directional
speed of up to 100 megabits per second, which is 2,000 timesfaster than
with a 56k modem dial-up connection. They get digital telephone service
with all the add-ons like voice mail, caller ID, etc. They also get
digital cable TV with no channel limitations, on-demand video rentals,
closed-circuit security capabilities, an apartment community Intranet
and much more, all from one company. "In other words, ClearWorks is
like having AT&T (NYSE:T), SBC (NYSE:SBC), TCI (Nasdaq:TCOMA) and AOL
(NYSE:AOL) in one Bundled Digital Services(SM) package," says Michael
McClere, chief executive officer ofClearWorks.net.
Charterwood Associates Ltd. was established to develop a truly unique
apartment community in Houston. The 156-unit complex will be known as
Tivoli at Charterwood ("Tivoli") and is located on the northwest side
of Houston just across from Compaq Computer's world headquarters. In
addition to such unique features as an on-site SPA, Tivoli will offer
digital voice, data and video services to its tenants. Planned services
include 100-megabit Internet access; on-demand video rental; customized
long distance, voice mail and fax solutions; digital cable TV; a
community intranet; and a business center with color laser copying and
printing capabilities.
According to Juana Madrid, manager of Tivoli at Charterwood, "We
believe the result of offering such services in an apartment community
will be phenomenal. Individuals who work at home will now have access
to technology which will oftentimes be superior to that offered in
traditional corporate offices. Parents will be able to monitor their
children playing outside from their computer via the on-site cameras.
No more going to the video store to find that the movie you wanted is
unavailable or paying video late charges. There will be access to voice
mail and faxes via the Internet from anywhere in the world, along with
long-distance solutions that can provide domestic long distance in the
5 cents to 7 cents per minute range, every day,all day. The list is
seemingly endless."
"Charterwood selected ClearWorks to provide its Bundled Digital
Services(SM) to the Tivoli complex because they are one of the few
companies to successfully integrate digital voice, data and video
services into one company," Madrid said. "In addition, they have
assembled a team of individuals who represent some of the best
technical expertise in the industry. We are certainly looking forward
to a long and successful relationship with ClearWorks."
According to the U.S. Department of Commerce, at current rates of
activity 330,000 apartment starts will be made nationwide this year.
Last year, according to the U.S. Census Bureau, more than 76 percent of
all apartments in the year's first three quarters were made in southern
and western U.S. states, the geographical areas where ClearWorks.net is
primary focusing on.
Even though the market potential for ClearWorks.net's services in the
Multiple Dwelling Unit market is staggering -- an estimated $11.9
billion per year -- the company's goals remain very conservative.
ClearWorks.net aims at adding approximately 5,000 MDU subscribers or
$180 million to its contract base in 1999. This would represent only
1.5% of the total market potential in the U.S.
In addition to a fairly significant market potential, the MDU market is
very lucrative for other reasons as well. "First of all, it represents
a whole new revenue stream for ClearWorks.net," says McClere. |
