New MDTV update on Wall Street Daily
Wall Street Daily
MDU COMMUNICATIONS, INC.
PRESS RELEASE --- UPDATE
June 1, 1999
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** MDU Communications Inc. Becomes Exclusive TV
Provider to New Community **
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This edition of WallStreetDaily focuses on a unique company,
MDU Communications, Inc. (OTC BB: MDTV). MDTV operates in a
niche market with extraordinary revenue opportunities derived
through providing satellite television to the multi-dwelling
unit (MDU) market throughout Canada.
MDTV has a strategic alliance with StarChoice (VSE: STC) one
of the two providers of satellite television within the
Canadian market. This strategic alliance authorizes MDTV to
offer satellite television programming to the 2.2 million
MDU's in Canada.
MDTV has a strong backlog of MDU's waiting to be "wired";
the backlog more than doubles the current subscriber base
for their services. And MDTV is adding MDU's at an average
rate of approximately 1,000 units per week.
The revenue stream to MDTV consists of a $5.95 digital
access fee plus a 30% share of the programming fees received
by StarChoice from MDTV's clients. Based on the average
billing rate, MDTV currently shows revenue of up to $14.95
per MDU with the current average approximately $10.00.
MDTV enjoys an impressive gross revenue margin of 75%.
This revenue stream only considers satellite revenue,
however the company intends to potentially provide distance
learning, home security and other profitable voice and data
services, including Internet access and local phone service
to the MDU subscriber.
A Press Release was just released by MDU Communications,
Inc. and it is reprinted below for the benefit of
subscribers. What is interesting to us is that by benefit
of the agreement discussed in this press release MDTV
will increase its subscriber base by more than 7 percent.
This agreement alone could bring in gross revenues of
almost $200,000, and this is just the beginning of the
Company's marketing efforts in this new territory.
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Tuesday June 1, 9:03 am Eastern Time
Company Press Release
MDU Communications Inc. Becomes Exclusive TV
Provider to New Community
RICHMOND, British Columbia--(BUSINESS WIRE)--
June 1, 1999--MDU Communications Inc. (OTC BB:MDTV - news)
is pleased to announce that the company has entered into
an agreement obtaining the exclusive rights to provide
television service to the community of Lake McGregor,
Alberta.
This new community will have 400 homes developed in the
first phase of construction with this number increasing
to approximately 1,000 homes in the following phases.
MDU Communications is very pleased with the early
success of the newly opened Halifax, Nova Scotia office.
This office has been responsible for the signing of
over 30 properties including the Oak Island Inn, an 80
unit coastal getaway in Nova Scotia. The current rate of
unit installations in this region is exceeding 150 units
per week.
The Lower Mainland of British Columbia continues to be
very active for the company. Within the past 10 days
access agreements for buildings, totaling over 1,300
units, have been signed with an additional 750 units
signed to letters of intent.
The company has now installed their MDU Digital
Satellite System in over 55 sites across Canada. with
these latest additions the company has in excess of
11,000 satellite tv subscribers and currently has
over 250 building sites awaiting system installation.
On May 10, 1999, at a special meeting of the
shareholders of MDU Communications International Inc.,
the shareholders approved the transfer of the company's
incorporation from the State of Colorado to the State
of Delaware.
The company is also pleased to announce that it has
electronically filed its form 10-SB with the Securities
and Exchange Commission on May 12, 1999. Once approved
by the SEC, MDU Communications International Inc. will
become a fully reporting company.
Through mutually beneficial relationships with our
clients, MDU facilitates the delivery of new technology
to residents of multi-dwelling units including Apartment
buildings, Condominiums, Universities, Gated
communities, Hotels/Motels, and Work camps. MDU
Communications Inc. is a nationally authorized Star
Choice System Operator.
MDU Communications Inc. is the premiere supplier of
digital satellite television to the MDU market and
competes with cable television across Canada. With
digital pictures, better selection, more bandwidth and
enhanced CD quality sound, MDU offers more choice and
exceptional quality. |
