Excite@Home predicts rapid growth
REUTERS
NEW YORK, June 29 — High-speed Internet access provider Excite@Home Corp. executives said on Tuesday they expect to be able to capture one-quarter of the total Internet service provider marketplace by 2002.
Excite@Home (ATHM)
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“BY 2002, WE EXPECT to have a 25 percent market share of the ISP market, without regard for speed,” said Excite@Home President George Bell.
Bell and Excite@Home Chief Executive Thomas Jermoluk were speaking at a panel discussion on the outlook for the newly formed company, which has grown by some 400-500 employees since they merged in May. The panel was moderated by Morgan Stanley Dean Witter analyst Mary Meeker.
Jermoluk said he was comfortable with analysts' expectations for the company, including subscriber growth estimates.
“We are planning a big Christmas push, which should bring us a strong Q1, 2 and 3,” said Jermoluk, adding he was comfortable with analysts' expectations for the company's financial results over the next year. “We're on course with that.”
Meeker estimates that the company will have 1 million subscribers this year, after recently surpassing the 500,000 customer mark. The @Home services will be available to 20 million homes in 1999, 30 million homes in 2000, and 40 million homes in 2001, she said.
“A lot of people are currently unaware the rollout is available to them,” she said.
Jermoluk and Bell said they were cross marketing to Excite customers within the areas where @Home is available, through e-mails notifying them they could subscribe to the service.
“We take for granted the value of the brand,” said Meeker. “Excite is one of the top 6 or 7 brands with 50 percent name recognition.”
Bell said the Excite-branded home page would offer original content to attract and retain subscribers to the cable service as well as access over phone lines and devices.
The company remained open to the possibility of a deal to provide high speed access to customers of the leading Internet media company America Online Inc., Jermoluk said. Bell added the company has had discussions and is still interested in partnering with satellite companies to capture rural markets where cable is not an option.
Bell said he believes Internet access in metropolitan areas will shape up to be a battle between cable access providers like Excite@Home and telephone companies that offer digital subscriber lines.
He said he sees cable ahead at this point due to upgrades that have already been carried out.
“They are going to have to go through that 3-4 year growth period,” he said. “We are out there first.”
Excite@Home is owned by AT&T Corp.
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