Press Release re Mass Marketing of Cable Modems
MediaOne Announces First of Its Kind Partnership with
Circuit City to Offer Bay Network Cable Modems and High
Speed Internet Service
PR Newswire - September 23, 1998 13:06
MediaOne Express Service Offered in 17 New England Retail Stores
Monthly Cost Savings of 25% for Customers Who Choose to Buy Cable Modem
ANDOVER, Mass., Sept. 23 /PRNewswire/ -- MediaOne(R), a unit of MediaOne
Group (NYSE:
UMG), the Broadband services company, announced today its partnership with Circuit
City, the
nation's largest retailer of brand-name consumer electronics and appliances, to sell
NETGEAR, a
subsidiary of Bay Networks, cable modems that deliver MediaOne Express, the
high-speed Internet
service. This venture is the first time a Broadband company has teamed with a national
retailer to sell
cable modems and high-speed Internet service on a widespread basis to consumers.
NETGEAR cable
modems are designed and manufactured by broadband technology pioneer Bay
Networks, a Nortel
(Northern Telecom) business.
MediaOne Express is the fastest Internet service available to the computer in the home,
with speeds up
to 50 times faster than a standard phone connection, and delivered on MediaOne's
extensive
fiber-optic Interactive Broadband network.
Circuit City customers will now have the opportunity to purchase a cable modem and a
MediaOne
Express installation kit. The initial retail price for the cable modem is $199 and the
MediaOne Express
installation kit is $49 -- a savings of $50 off the normal installation price. In addition, the
monthly
MediaOne Express service price is further reduced in price to $29.95 for customers
with MediaOne's
standard cable service -- a savings of $10 off the regular monthly price. The installation
kit includes
one installation appointment certificate, along with a MediaOne Express user's guide and
coupons for
MediaOne cable television products.
Consumers can find out more about MediaOne Express at:
www.MediaOneExpress.com, or by
calling 1 (888) MEDIAONE.
Interested consumers can go to any one of 17 participating Circuit City stores located in
Massachusetts and New Hampshire to learn about MediaOne Express from Circuit
City sales
associates. All stores have point of purchase displays and hands-on demonstration
areas. (See list of
stores following release.)
The launch of this venture represents the latest progression in MediaOne's leadership in
deploying new
technology, introducing advanced telecommunications services and launching innovative
sales channels
to provide customers more choices. MediaOne will continue to include the cable
modem in the
monthly service price for those customers who choose not to purchase one. MediaOne
Express is
currently available to about 725,000 households in 89 communities throughout
Massachusetts and
New Hampshire.
"We are very proud and excited by this first-time-ever partnership to provide
consumers with a choice
in purchasing a cable modem through a national retailer such as Circuit City," said Linda
Laskowski,
Regional Vice President of Broadband Communications and Telephony. "This gives us
the opportunity
to provide awareness and demonstrations of this amazing service throughout a
widespread area."
"Our retail territory mirrors MediaOne's extensive service area for high-speed Internet
service here in
New England, and we're enthusiastic about this pioneering venture to provide customers
additional
choice in modem technology," said Rick Souder, assistant vice president of
merchandising for Circuit
City.
"The demonstration and sale of NETGEAR cable modems in Circuit City stores around
New England
is a great opportunity for consumers to experience the speed and power of MediaOne
Express," said
Patrick Lo, vice president of NETGEAR.
"Working with NETGEAR, Circuit City, and MediaOne to jump start retail distribution
of cable
modems to consumers is complementary to the success the Broadband Technology
Division has
achieved selling directly to cable operators," said Karl May, vice president and general
manager of
Bay Network's Broadband Technology Division.
MediaOne Express provides a continuous, direct link to the Internet for a customer's
computer
through MediaOne's fiber optic Interactive Broadband network -- the same network
used for
television service -- eliminating the need for additional phone lines. It's fast, simple and
convenient.
MediaOne Express service includes:
-- high-speed unlimited access time to the Internet;
-- free multimedia tool kit, including customized Web browser and
plug-ins, e-mail, and newsgroups;
-- personal Web page;
-- mobile access for away-from-home Internet/e-mail connection (currently
available as a trial);
-- a continuous connection to MediaOne's Interactive Broadband network;
and
-- free e-mail and online help, and telephone support seven days a week,
24 hours a day.
The enormous capacity of Broadband technology allows MediaOne to simultaneously
deliver to the
home high-speed Internet service to a customer's computer, Digital Telephone Services,
up to 100
channels of cable programming and interactive program guides. Interactive Broadband
services are
made possible through MediaOne's ongoing network upgrade, which includes the
installation of fiber
optics. By the end of the year, MediaOne will have invested $1 billion in Broadband
network
improvements in the Northeast.
Founded in 1949, Circuit City Stores, Inc. is the nation's largest retailer of brand-name
consumer
electronics and major appliances and leading retailer of personal computers and music
software. With
headquarters Richmond, Va., Circuit City operates 514 Superstores, four consumer
electronics-only
stores and 50 mall-based Circuit City Express stores throughout the United States.
Consumers can
learn more about Circuit City by accessing the company's website at
www.circuitcity.com.
MediaOne, the nation's leading Broadband services company, provides entertainment,
information,
and communications services to about 5 million customers in 17 states. MediaOne
Group (NYSE:
UMG) is one of the world's largest broadband communications companies, bringing the
power of
Broadband and the Internet to more than seven million customers in the United States,
Europe and
Asia. The company also has interests in some of the fastest-growing wireless
communications
businesses outside the U.S., serving nearly three million customers. For 1997, the
businesses now part
of MediaOne Group produced $6.6 billion in proportionate revenue.
CIRCUIT CITY LOCATIONS FOR MEDIAONE EXPRESS
Demonstration Sites
MASSACHUSETTS
Braintree, MA
250 Granite Street
Burlington, MA
84 Middlesex Turnpike
Danvers, MA
4-6 Newbury Street
Dartmouth, MA
456 State Road
Dedham, MA
350 Providence Highway
Hanover, MA
1755 Washington Street
Hanover Mall
Holyoke , MA
33 Holyoke Street
Natick, MA
1450 Worcester Road
North Attleboro
190 S. Washington Street
Saugus, MA
607 Broadway
Seekonk, MA
179 W. Highland Ave.
Somerville, MA
65 Mystic Avenue
Springfield, MA
510 Parker Street
NEW HAMPSHIRE
Manchester, NH
110 S. Willow Street
Nashua, NH
224 D.W. Highway
Portsmouth, NH
1700 Woodbury Ave
Salem, NH
428 S. Broadway Street
SOURCE MediaOne
/CONTACT: Rick Jenkinson of MediaOne, 978-683-5500, ext. 2145,
rjenkinson@mediaone.com; or Morgan Stewart of Circuit City, 804-527-4003,
morgan_stewart@ccnotes.ccty.com; or Don Gross of Bay Networks, 210-979-2155,
dgross@baynetworks.com/
/Web site: circuitcity.com
/Web site: mediaoneexpress.com
/Web site: mediaone.com
(UMG)
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