SBC Partners With Concentric to Deliver High-Speed, 'Always-On' DSL Service To Business Customers Nationwide
Partnership Further Positions SBC to Become America's Leading Provider of DSL Telecommuting Solutions
SAN JOSE, Calif., Nov. 15 /PRNewswire/ -- Concentric Network Corp. (Nasdaq: CNCX - news), a leading provider of e-business solutions for small- to medium-sized companies, and SBC Communications, Inc. (NYSE: SBC - news) today announced an agreement that will enable SBC to provide Digital Subscriber Line (DSL) service to business customers nationwide. SBC will leverage the ConcentricDSL Private Label program to provide a minimum of 25,000 high-speed, ''always-on'' DSL Internet access lines to customers located outside the 13 states SBC currently serves.
''We are pleased that SBC has chosen to tap into our expertise in DSL service,'' said Henry R. Nothhaft, chairman, president and CEO of Concentric Network. ''Ultimately this deal is a win for customers, as SBC is positioned to go beyond its traditional 13-state territory and meet the broadband needs of business customers located throughout the nation. By partnering with Concentric, SBC will help customers in other regions of the country experience the benefits of DSL service immediately.''
By the end of 1999, SBC will begin offering the service to enterprise customers who want to provide employees with remote, high-speed network and Internet access, and to medium-sized businesses in need of increased bandwidth. DSL will also serve as a remote access technology for SBC's Enterprise Virtual Private Network (EVPN) service. EVPN provides fully managed, cost-effective, wide area networks that enable businesses to securely communicate between corporate offices and with business partners and customers.
''Enterprise customers are increasingly turning to SBC to provide DSL-powered telecommuting solutions for their nationwide employee base,'' said James D. Gallemore, executive vice president, strategic marketing and planning for SBC. ''Our partnership with Concentric, combined with our aggressive 13-state DSL deployment, gives SBC the ability to deliver DSL service on a national scale to enterprise customers and to thousands of medium-sized businesses who need affordable high-speed access.''
The agreement with Concentric complements SBC's overall broadband strategy. Already the nation's top provider of DSL service with sales to more than 100,000 subscribers, SBC recently announced Project Pronto, a $6 billion initiative designed to transform the company into the largest single provider of advanced broadband services in America. The initiative will make super-fast, always-on Internet access available to nearly all of SBC's customers, and create a platform to deliver next-generation, broadband-powered services.
Over the next three years, Project Pronto will make DSL service available to 77 million Americans - approximately 80 percent of SBC's customers -- in the 13 states SBC serves. Customers in target markets will receive guaranteed speeds of 1.5 megabits per second (Mbps), with 60 percent of customers eligible for guaranteed speeds of 6.0 Mbps. To date, SBC has made DSL service available to nearly 10 million households and businesses.
To augment this deployment, SBC will work closely with Concentric to provide customers outside its region with a seamless, SBC-branded DSL experience. SBC will offer customers four service options, with connection speeds ranging from 144 kilobits per second to 1.5 Mbps. Service will be available for as low as $69 per month.
Since launching DSL in late 1997, Concentric has aggressively expanded its deployment to 18 metropolitan cities, including Atlanta, Baltimore, Boston, Chicago, Dallas, Denver, Detroit, Houston, Los Angeles, Miami, New York City, Philadelphia, Portland, Sacramento, San Francisco, San Diego, Seattle and Washington, D.C. Next year, the company plans to launch its ConcentricDSL Private Label program in more than 40 additional cities.
SBC will offer the service with Concentric in cities it does not currently serve. In these cities, Concentric will handle circuit ordering, installation and customer support, and will supply the customer's on-site equipment. To provide SBC's enterprise customers with one consolidated bill, Concentric will private label, under the SBC brand, the ordering, installation, and billing processes. The agreement is non-exclusive.
About Concentric Network Corporation
Concentric Network Corporation provides complete, easy-to-use Internet business solutions for small- to medium-sized companies and customized Virtual Private Network and data center services for larger organizations. Concentric's portfolio of services for small- to medium-sized companies includes high-speed DSL access, Web hosting and e-commerce. For larger enterprises, the company offers dedicated Web hosting and data center services. Concentric is the first application infrastructure provider, offering a suite of infrastructure services that enable application service providers to deliver applications and Web-based services over the Internet or a VPN. Concentric's VPN solutions enable an organization to securely and reliably communicate with its offices, mobile sales force, business partners, vendors and customers.
Concentric's services rely on a high-performance, ATM-based network that covers North America, and through various partnerships, reaches internationally. Concentric also operates state-of-the-art hosting centers at strategic locations across the U.S. All Concentric services are backed by 24 hour/7 days a week customer support, and many are backed by strong service level agreements.
The company has received Most Innovative ISP two-years in a row from Inter@ctive Week, and recently received two Well-Connected Awards from Network Computing for Most Innovative Service Provider of the Year and for Best Enterprise Internet Service Provider for ConcentricHost(TM). Deloitte & Touche recently ranked Concentric the 6th fastest growing technology company in Silicon Valley, as part of their Fast 50 Program. The company consistently receives top ratings by Inverse Network Technology, an independent research firm that grades the performance of network service providers each month. Traded on NASDAQ under the symbol ''CNCX,'' Concentric Network is headquartered in San Jose, Calif., with operations offices in Southern California, Chicago, Il., St. Louis, Mo., and Saginaw, Mich., along with sales and channel support across the U.S. For more information, access the company's Web site at concentric.net or contact Public Relations at publicrelations@concentric.com.
About SBC Communications Inc.
SBC Communications Inc. (www.sbc.com) is a global communications leader. Through its trusted brands -- Southwestern Bell, Ameritech, Pacific Bell, SBC Telecom, Nevada Bell, SNET and Cellular One -- and world-class network, SBC provides local and long-distance phone service, wireless and data communications, paging, high-speed Internet access and messaging, cable and satellite television, security services and telecommunications equipment, as well as directory advertising and publishing. In the United States, the company currently has 87.3 million voice grade equivalent lines, 10.3 million wireless customers and is undertaking a national expansion program that will bring SBC service to an additional 30 markets. Internationally, SBC has telecommunications investments in 22 countries. With more than 200,000 employees, SBC is the 14th largest employer in the U.S., with annual revenues that rank it among the largest Fortune 500 companies.
Concentric has reached an agreement to acquire Internet Technology Group plc (AIM: ITH.L), a leading provider of Internet access and hosting for businesses in the UK. The acquisition is subject to Internet Technology Group shareholder, court and regulatory approvals and is currently expected to close in the fourth quarter of 1999.
This press release contains forward looking statements regarding Concentric's proposed acquisition of Internet Technology Group plc (ITG), and the potential benefits to be realized by the combined groups, including but not limited to expansion of Internet services into Europe, that are subject to risks and uncertainties. Actual results may differ materially from those described in the forward looking statements as a result of a number of factors, including the requirement for Internet Technology Group stockholder, court and regulatory approval, and the ability of the combined groups to successfully integrate and expand their service offerings.
NOTE: Concentric Network Corporation, the Concentric logo and ConcentricDSL are registered trademarks. All other trademarks are the property of their respective owners.
SOURCE: Concentric Network Corporation |
