AvTel Addresses Earlier News Reports
SANTA BARBARA, Calif.--(BUSINESS WIRE)--Nov. 13, 1998--AvTel Communications, Inc. (NASDAQ: AVCO - news) today addressed certain reporting by news organizations with respect to its DSLink(sm) Service, which was launched yesterday. In addition, at the request of The Nasdaq Stock Market, Inc., AvTel provided additional details regarding its DSLink(sm) Service.
As explained in AvTel's press release yesterday, AvTel and its Internet service provider subsidiaries Silicon Beach Communications, Inc. and WestNet Communications, Inc., began offering its DSLink(sm) Service in downtown Santa Barbara, California. DSLink(sm) Service is a high speed Internet access service over an Asymmetric Digital Subscriber Line (ADSL). Approximately 10,000 households in Santa Barbara will be eligible initially to subscribe for the DSLink(sm) Service.
ADSL service will be provided over existing telephone lines by the local exchange carrier for Santa Barbara. Subscribers will be required to purchase an ADSL modem manufactured by a third party to be able to use the DSLink(sm) Service. ADSL technology is an existing technology. ADSL service is currently available through local exchange carriers in a number of other markets, but has only recently become available in the Santa Barbara market. AvTel has no proprietary technology relating to ADSL.
Subscribers will be required to pay monthly fees to Silicon Beach or WestNet for the DSLink(sm) Service and to the local exchange carrier for the ADSL service. Silicon Beach and WestNet are offering several levels of the DSLink(sm) Service to residential, small office/home office and corporate customers, with pricing varying based upon access speed and other features.
For residential customers, the pricing for these service levels ranges from a monthly charge of $30 to Silicon Beach or WestNet for an access speed of 256k (for downloads to the customer) to a monthly charge of $160 to Silicon Beach or WestNet for an access speed of 768k (for downloads to the customer). In addition, the local exchange carrier's monthly charges for ADSL service to residential customers range from $40 to $80. To begin service, the residential customer must pay a $75 setup fee to Silicon Beach or WestNet and a $99 installation fee to the local exchange carrier (which installation fee includes the purchase of an ADSL modem from the local exchange carrier).
For corporate customers (which may allow multiple users), the pricing for these service levels ranges from a monthly charge of $250 to Silicon Beach or WestNet for an access speed of 256k (for downloads to the customer) to a monthly charge of $950 to Silicon Beach or WestNet for an access speed of 1.5M (for downloads to the customer). In addition, the local exchange carrier's monthly charges for ADSL services to corporate customers range from $40 to $250. To begin service, the corporate customer must pay a $300 setup fee to Silicon Beach or WestNet and a $99 installation fee to the local exchange carrier (which installation fee includes the purchase of an ADSL modem from the local exchange carrier).
All prices are subject to change by AvTel and/or the local exchange carrier.
AvTel plans to extend this service to the neighboring areas of Goleta, California and Carpinteria, California when the local exchange carrier enables ADSL service there, expected to be by the end of this month. At that time, approximately an additional 20,000 households will be eligible to subscribe for the DSLink(sm) Service. AvTel intends to extend the DSLink(sm) Service to the Los Angeles area when the local exchange carrier for that area can enable the ADSL service. AvTel believes that it is the first provider of this type of high-speed Internet access in the Santa Barbara area. However, AvTel does not have any exclusive rights to offer or provide such services in any area.
Contrary to some wire reports yesterday, AvTel has no specific plans to extend its DSLink(sm) Service nationally. However, it will consider other markets on a case-by-case basis as the opportunity arises. AvTel is in the process of launching Internet dial-up service nationally under its MatrixInet brand. Also contrary to some wire reports yesterday, AvTel does not produce or sell the ADSL modem or any similar equipment.
AvTel Communications, Inc. is a provider of broadband network services integrating voice, data and video networking solutions for individuals and business customers. The Company markets and sells a broad range of telecommunications and advanced network services through independent value-added resellers and internal direct sales professionals. The Company targets mid-size corporations, small-office home-office professionals and select residential market segments. The Company is fully certified by the FCC and registered in all 48 contiguous states and Hawaii. In addition, the company holds billing agreements with all the Regional Bell Operating Companies, GTE and other independent telephone companies.
All statements in this press release other than statements of historical fact are forward-looking statements that involve substantial risks and uncertainties. Reference is made to the Company's Annual Report on Form 10-K for the year ended December 31, 1997 and to the Company's other reports filed with the Securities and Exchange Commission for a discussion of such risks and uncertainties and other factors that may have material effect on the Company's business.
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Contact:
AvTel Investor Relations
805/884-6322
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