Globo Cabo Launches Virtua, Offering High Speed Internet Access to Cable Subscribers
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RIO DE JANEIRO, Brazil--(BUSINESS WIRE)--Dec. 16, 1999--Globo Cabo S.A. (NASDAQ: GLCBY - news) today announced the launching of its high-speed Internet access service, Virtua, which will provide broadband Internet access initially at speeds of 256 Kbps to cable subscribers. Rollout of Virtua will begin in the cities of Sao Paulo and Sorocaba, where customers will be able to register for installation of the service on December 20, 1999. Service will be available to the cities of Rio de Janeiro, Brasilia, Belo Horizonte, Goiania, Santos and Campinas during the first half of 2000.
To gain access to the Internet, cable subscribers will need to purchase two services: 1) Virtua, which will be offered at an introductory price (through 2/29/00) of R$53.90/month (approximately US$29.00); and 2) an Internet service provider (ISP), for which customers will initially be given the option to choose from four participating Internet providers: Globo.com, Matrix, UOL and ZAZ. The ISP will not only offer users an array of content options, but will enable users to navigate the Internet. ISP costs are separate from the Virtua service and vary among the participating companies.
``The new high-speed Internet platform will bring an entirely new and exciting Internet experience to cable subscribers,' remarked Moyses Pluciennik, President and CEO of Globo Cabo. ``In addition to allowing for audio and video streaming, video web conferencing, on-line interactive gaming, web-hosting and network connectivity, in the future Virtua will be able to support services such as remote CD ROM access, Video on Demand (VOD) and other broadband services as they are developed and offered by the Internet Service Providers.'
Commenting on the launching of Virtua, Roberto Pinheiro, Chief Operating Officer, added, ``We expect to connect approximately 50,000 Virtua subscribers during the next 12 months, with investments totaling R$51 million (US$28 million) in this first stage of development.'
Globo Cabo is offering a number of payment options for the purchase or rental of cable modems. Purchase plans include a single payment of R$599.00 (approximately US$323.00) or installment plans of 3, 6, or 12 monthly payments; cable modem rentals will be available for R$21.00/month (approximately US$11.00) for a minimum of 24 months.
Installation of the equipment and service will be offered through two options: 1) Standard, R$250.00 (approximately US$135.00), for subscribers that already have an Ethernet PC card; and 2) Complete, R$350.00 (approximately US$189.00), which includes installation of the data point, PC configuration, and a new PC network card.
The above prices are valid during the promotional launch period, which will extend through February 29, 2000. During this period, all subscribers will receive a free PC network card with the installation of Virtua. To sign-up for the service, resident subscribers in the areas where the service is currently being offered should visit www.virtua.com.br.
TECHNOLOGY
The technology employed by Virtua allows for access speeds of up to 8 Mbps. ``We have developed a product that initially offers high speeds at a reasonable cost to our customers,' added Pinheiro. ``The first format will offer speeds of 256 Kbps, which is already a remarkable improvement over traditional 'dial-up access.' In the near future, we will offer higher speeds for customers with greater bandwidth demands.'
According to ANATEL regulations, customers acquire broadband access from cable TV operators, which in turn connect their PCs to the Headend, (the central signal reception and transmission unit). The connection from the Headend to the Internet must be made by way of Internet providers, which have established commercial agreements with Globo Cabo (as listed above). In this way, Virtua offers a high speed, broadband alternative to connect users with Internet service providers (ISPs).
To guarantee the quality of the Internet service, Globo Cabo has developed its own specially trained customer support staff, installation professionals and specialized technicians. In addition, Virtua subscribers will be offered remote access to a call center, where support will be available through web video conferencing, starting January 2000.
COMMERCIAL PARTNERSHIPS
Cable Modem - S-CDMA Technology
The cable modems chosen by Globo Cabo will be provided by Terayon, a U.S. company that developed the S-CDMA technology (Synchronous Code Division Multiple Access), which has as its main advantage an extremely high resistance to noise, allowing for a cleaner signal, reliability and higher performance, proven in various cable applications throughout the world.
The cable modems are compatible with DOCSIS (Data Over Cable Service Interface Specification) 1.0 and 1.1 standards, the latest to be established by Cable Labs, the U.S. company involved in the development of standards for the area of technology convergence for TV cable operators. Globo Cabo is the only pay television operator in South America associated with Cable Labs.
Globo Cabo has also entered into a commercial agreement with Compaq, whereby cable customers will be offered special equipment packages for the purchase of personal computers.
Globo Cabo is the largest cable television operator in Brazil, with ownership interests in 18 cable television systems and one MMDS system, including operations in Brazil's three largest cities, Sao Paulo, Rio de Janeiro and Belo Horizonte. With close to 1 million connected subscribers, Globo Cabo's cable network extends over 24,000 km and passes approximately 5 million homes.
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Contact:
Globo Cabo S.A.
Fernanda Mourao
55-21-540-4434
or
Citigate Dewe Rogerson Inc.
Curtis Smith / Marco Lima
212/419-4244 |
