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To: Frank A. Coluccio who wrote (5026)8/23/1999 8:30:00 AM
From: Michael F. Donadio  Respond to of 12823
 
NY Times: Multimedia Transmissions Drive Net Toward Gridlock

nytimes.com

By SARA ROBINSON


When a computer sending conventional data encounters congestion, it
significantly slows its own transmission rate, but a computer sending
streaming data will reduce the flow only slightly. So if streaming traffic
competes with conventional traffic for the same congested strip of
roadway, the streaming traffic, like some VIP motorcade, assumes the
right of way and lets all other data traffic pile up. ...
***
By its very nature, streaming media has to flow continuously to the user's
computer, so it cannot follow the same traffic rules as conventional data.
But even so, it is possible for packets of streaming data to interact civilly
with other traffic on the Internet. The reason they do not, Jacobson said,
is that streaming media providers have no incentive to comply with traffic
rules.

Today, he said, "if Real Networks is polite and Microsoft isn't, then Real
looks crummy."


Even elbowing all other data aside, today's streaming media produces a
very low quality of entertainment most of the time.

Much of that lack of quality today is a result of slow modems at the
user's end. In three to five years, when cable modems and souped-up
digital telephone lines are expected to be common, most Internet users
may be listening to live Webcasts or playing high-quality radio on their
computers. In 10 years, movies and commercial television might very
well be carried over Internet channels. ...
***

Jacobson's proposal, developed with Ms. Floyd in 1989 and only now
being tested in Cisco routers, uses a kind of virtual penalty box. When
the router experiences congestion, it takes a random sample of its traffic.
If a certain host computer is overrepresented in that sample, its packets
are placed at the end of the line.

This creates the right incentive structure
, he said, because the Internet
service providers do not have to persuade Real Networks or any other
company to obey the rules. Rather, he says, "The customers do instead,
because the quality" of their audio and video "gets really crummy."


All the best,
Michael



To: Frank A. Coluccio who wrote (5026)8/23/1999 8:31:00 AM
From: Frank A. Coluccio  Respond to of 12823
 
USA Video Interactive Signs With IC One to Provide
Video-on-Demand To 1.5 Million Homes

August 23, 1999

MYSTIC, Conn., Aug. 20 /PRNewswire/ via
NewsEdge Corporation -- In collaboration with its
subsidiary Merging Rivers Media, USA Video
Interactive (OTC Bulletin Board: USVO; Alberta: US)
( usvo.com) has signed a Letter of Intent
to conclude an agreement with IC One Inc.,
(Nasdaq: SCTN) ( icone.com) to provide
Video-on-Demand(TM), Wavelet compression,
educational and other content in a deployment to
150,000 apartment units within 12 months and more
than 1.5 million apartment units over the next 36
months. IC One had previously announced it would
supply 1.5 million set-top boxes and "Rent Smart
Cards" to provide Internet access and other services
to its affiliated apartment communities in Nevada,
Arizona and elsewhere as part of an agreement with
Global Capital Limited.

The Letter of Intent projects that USA Video
Interactive's technology will be incorporated in these
set-top boxes before installation. Additionally, USA
Video Interactive will provide video server clusters for
strategic placement throughout the apartment
communities, and will provide digitized content and
video hosting services through its video portal on the
UUNET Internet network. UUNET is an MCI
WorldCom company ( uunet.com).

"We are glad to see interest from the marketplace in
providing driven content for our set-top box contract,"
Dave Simon, IC One Senior Vice President of
Technology, said today. "We are aggressively
seeking to improve the market position of our
partners and ourselves, and USA Video Interactive's
technology is compelling."

"This is another segment of the vast Internet market
where we intend to make our mark," said Edwin
Molina, President of USA Video Interactive. "Helping
provide the full array of bundled services
demonstrates where the Internet is headed and how
fully involved it is becoming in our everyday lives. "

The agreement between IC One and USA Video
Interactive will be the basis of a contract once
pricing structures and delivery schedules are
established and due diligence by both parties is
completed.

IC One is a leader in the fast-growing, integrated
smart-card loyalty and fundraising solutions
marketplace. It recently expanded to include
multi-language touch screen, Internet-enabled
system of kiosks, as well as home-based PC
access to on-line shopping featuring 3-D Preview
Marketing(TM) and virtual tours. IC One recently
announced the acquisition of an Internet Service
Provider. With a back end powered by an IBM (
ibm.com) DB2 database, IC One plans to
be able to supply loyalty solutions to merchants
both virtual and physical.

USA Video Interactive is an international designer
and supplier of high-tech Video-on-Demand(TM)
systems, services and solutions. Merging Rivers
Media is USA Video Interactive's West Coast
subsidiary, focused on providing the USA Video
Interactive technology and full advertising-agency
services to the entertainment industry. The USA
Video Interactive technology allows users to view
streaming video or to access digitized video
libraries, including movies, sports, other
entertainment, educational resources, corporate
training seminars and other archives. The USA
Video Interactive technology gives users full-motion
video; the unique flexibility of standard, VCR-like
controls of play, fast forward, reverse and pause;
and the convenience of a standard internet-browser
format for access. USA Video Interactive can utilize
MPEG-1, MPEG-2 or MPEG-4 compression
techniques but prefers its Wavelet compression
technology. The USA Video Interactive Wavelet
technology allows direct streaming and download
and play options; provides video images significantly
faster and at a higher degree of resolution than with
previously available methods; significantly
overcomes bandwidth restrictions; and eliminates
the blockiness and slowness of current
technologies, all at a lower cost. An essential
feature of the USA Video Interactive technology is
that it allows extremely high compression ratios
while retaining broadcast quality.

USA Video Interactive Corp.

Corporate Headquarters Office: 70 Essex Street;
Mystic, CT 06355;

(800) 625-2200; (860) 572-1560.

Merging Rivers Media: 6380 Wilshire Blvd.; Suite
911; Los Angeles, CA

90048; (310) 441-0772.

Canada Office: 837 West Hastings Street; Suite
#507; Vancouver, B.C.

V6C 3N6.

Trading symbol on the US NASD OTC BB: USVO;
SEC 12g3-2(b) Exemption:

#82-1601. Trading symbol on The Alberta Stock
Exchange: US.

Standard & Poors Listed. CUSIP 902924208;
Video-On-Demand(TM) and Video

Yellow Pages(TM) are trademarks of USA Video.

The Alberta Stock Exchange has not reviewed and
does not accept

responsibility for the adequacy or accuracy of this
release.

SOURCE USA Video Interactive Corp.

/CONTACT: Media Relations - Tony Castagno,
860-572-1560, or Investor Relations - Kevin Yorio,
860-572-1560, both of USA Video Interactive Corp.;
or Doug Lloyd, Vice President of Marketing of IC
One, Inc., 801-355-0066/ /Web site:
http//www.usvo.com/ (USVO US. SCTN)

[Copyright 1999, PR Newswire]