Enron on the Internet? What the hell? This is interesting...
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Enron Unveils Net-Video Alliance
With Software Firm RealNetworks
By KATHRYN KRANHOLD
Staff Reporter of THE WALL STREET JOURNAL
Energy giant Enron Corp. announced Thursday an alliance with
RealNetworks Inc. to offer high-quality video to Internet service providers
and big corporations over a fiber-optic network it has been building
nationwide.
The announcement marks Houston-based Enron's first major foray into the
online world. Enron, like several electric utilities and energy companies, has
been laying fiber-optic lines throughout the country. Joe Hirko, president
and chief executive officer of Enron Communications Inc., said the
company will have about 15,000 miles in place by the end of this year that
stretches from Portland, Ore., down to Los Angeles to Miami.
Enron started building its electronic-network strategy in 1997. Last
November it acquired a software company, Modulus Inc. of Houston,
which created the software that is used on Enron's broadband network.
Broadband networks allow users to call up more information faster and
with more clarity.
Neither Enron nor RealNetworks officials would disclose the size of their
investments or detailed financial information about their alliance. However,
the two companies have agreed on a revenue-sharing arrangement, officials
said.
Mr. Hirko said the company will provide a package of products to
customers called the "Enron Intelligent Network." RealNetworks'
software, which allows users to access videos, news shows and music on
their computers, will be the first significant product, he said. RealNetworks
says it currently has about 85% of the market for such "streaming-media"
products.
Mr. Hirko said Enron will begin delivering the product in late March or
early April. He said, "the national network is 'lit' and in testing." Mr. Hirko
said the key market for Enron's network and software package will be
Internet service providers, regional telecommunication access providers
and content providers that want to deliver a higher-quality video.
Over the past year, Len Jordan, senior vice president of media for
Seattle-based RealNetworks, said more and more people are watching
events, such as the State of the Union address, on their computers by
accessing it through the Internet. Mr. Jordan said Enron's broadband
network coupled with the software will make images much more fluid and
continuous. Instead of getting around eight frames a minute with a regular
telephone line, Mr. Jordan said, Internet users will be able to get some 30
frames per second. "We can deliver much better quality video," he said. |
