Brazil's Virtua To Offer Globo, Matrix, UOL, ZAZ Content
By MARGARITA PALATNIK, DOW JONES NEWSWIRES; (5511)813-1988;
MPALATNIK@AOL.COM
SAO PAULO -- Brazil's leading cable TV company Globo Cabo SA
(GLCBY) Thursday launched its Virtua broadband Internet service in the city
of Sao Paulo.
In a written statement, Globo Cabo said Virtua will initially be available in the
upscale Sao Paulo neighborhoods of Vila Andrade, Morumbi, Itaim and Vila
Sonia.
The service will cost 53.90 reals ($1=BRR1.8450) per month for access at
256 bits per second. This price doesn't include subscription fees for content.
Virtua has signed Internet Service Provider partnerships with Globo Cabo
unit Globocom; ZAZ, the Brazilian unit of Spain's Terra Networks (TRRA);
Matrix, a subsidiary of Primus Telecommunications; and Universo Online, or
UOL, Brazil's leading portal and ISP.
Users who have a computer equipped with an ethernet board will be charged
BRR250 for installation. Users without the ethernet connection will be
charged BRR350.
Virtua is a cable-modem Internet access service created by Globo Cabo, the
country's largest cable TV provider serving around 1 million customers who
are among the most affluent in Brazil.
Microsoft Corp. (MSFT) invested $126 million for an 11% stake in Globo
Cabo in August.
During a press conference, Virtua director Luiz Lobo said Globo Cabo has
selected Terayon cable modems for its service, which will be sold for
BRR599.
Virtua will sell the modem in up to 12 installments or rent it for a minimum of
24 months, at BRR21 per month.
Subscribers' costs don't end there, as the ISP providers will charge an
average BRR35 reals for the first two months, which will go up to BRR68
thereafter. Virtua's subscription will also rise to BRR68 a month starting in
March.
Altogether, subscribers will be paying about BRR180 a month for
subscription services, including cable TV charges, but excluding equipment
and installation.
Virtua plans to offer promotional packages in partnership with computer
makers, in order to soften the blow of an initial sign up cost of about
BRR1,000 between hook up and equipment.
"We have identified a large number of people ready to buy a new computer,
who need a little push to make that decision," Lobo said, adding that
announcements would be made soon.
Globo Cabo hopes that Virtua will be the beginning of the company's
transformation into a full-service telecommunications concern.
"This moment marks a change for our company," said Roberto Pinheiro,
executive director at Globo Cabo. "From now on we're offering new digital
services, starting with Virtua, which in 2002 no doubt will end with
telephony," he said in reference to the date for complete deregulation of
Brazil's telecom market.
Virtua is open to deals with further partners, be they ISPs, or specific content
providers.
"Our business is telecommunications. We took great care to avoid becoming
a portal," Lobo said.
The Brazilian, - and Globo's - model differs from U.S. cable modem access in
that by law cable companies aren't allowed to offer content and must be open
to ISP and content partnerships.
"This is modernity," commented Marcelo Lacerda, praising communications
regulator agency Anatel.
Virtua designed a browser for its service called Floater, which enables use of
the whole screen, with a draggable browser tool that can also be minimized
while watching content.
The company hopes that high-speed access will bring a better navigating
experience to many users who enjoy always-on, high-speed service at work
but who have become exasperated with slow, dial-up connections at home.
"Always-on changes the pattern of Internet use," Lobo said, noting that
instead of people concentrating use in small chunks of time, they use the Web
on a regular basis throughout the day.
"The challenge now is to combine the language of the Internet with the
language of TV." |
