(COMTEX) B: SEPTEMBER BROADBAND STUDY PREDICTED AOL DEAL; SAME STUDY
B: SEPTEMBER BROADBAND STUDY PREDICTED AOL DEAL; SAME STUDY MAY NOW FORECAST
NEXT MAJOR MOVE AOL WILL LIKELY LOOK TO WIRELESS
PARSIPPANY, N.J., Jan 13, 2000 /PRNewswire via COMTEX/ -- A September
study by NJ-based telecom research and consulting firm, The Phillips
Group, foreshadowed AOL's (NYSE: AOL) recent $350 merger with Time
Warner (NYSE: TWX). That same study may now offer insights into the
next major deal along the information superhighway.
"Our September Broadband study clearly identified AOL as a company in
jeopardy if it didn't address its need for broadband access for its
customer," said Rick Kent, Vice President, Global Professional Services
at The Phillips Group, the world's largest research and consulting firm
dealing exclusively in the telecommunications industry. "That same
study also predicated cable would dominate the residential broadband
market.
"AOL's legal battles with telecom and cable leader AT&T (NYSE: T), its
slowly evolving relationship with several of the regional bell
operating companies including Bell Atlantic (NYSE: BEL), SBC (NYSE:
SBC), and Bell South (NYSE: BLS) for the nationwide rollout of DSL
service forced AOL to look at other cable operators such as Time Warner,
" said Kent. "Time Warner offers AOL both distribution and content,
something other cable operators could not provide. This does not mean,
however, that AOL is likely to abandon its DSL partnering efforts."
"AOL will also continue to develop its broadband relationship with
DirectTV (NYSE: GMH), although the results from that opportunity will
be slow in materializing," said Kent. "AOL will, in all likelihood,
look to mobile and fixed wireless technology which will bring AOL and
Yahoo (Nasdaq: YAHOO) into a head to head clash."
According to The Phillips Group study, satellite -- for broadband
Internet access -- offers longer-term potential as service providers
plan two-way systems that would lead to mass acceptance. The time lag
in entering the market, however, will prevent satellite from making a
serious challenge to the domination of Broadband Cable in the
residential market and DSL in the business market.
"We can expect to see AOL aggressively seek out new deals and users in
the mobile wireless market as interim broadband solutions such as 2.5
and 3G wireless technologies emerge in the market. Sprint (NYSE: FON)
and Vodaphone/Air Touch (NYSE: VOD) are likely partners for this AOL
strategy," Kent said.
The Phillips Group is a worldwide consulting firm specializing in
strategic solutions for corporate clients in the telecommunications and
information technologies industries. The firm is a division of Phillips
International Inc. of Potomac, MD, which has 1,250 employees and total
revenues of $350 million.
The Phillips Group, based in Parsippany, NJ, is the telecommunications
and information technology unit of the Phillips Group, a division with
100 professionals at offices in New Jersey and in London. For more
information contact The Phillips Group at 973-884-0100 or
thephillipsgroup.net.
SOURCE Phillips Group
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
-0-
CONTACT: Michael Cherenson of The Cherenson Group, 973-992-7800,
ext. 104, mcherenson@cherenson.com, for The Phillips Group
WEB PAGE: thephillipsgroup.net
GEOGRAPHY: New Jersey
INDUSTRY CODE: TLS
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