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To: Frank A. Coluccio who wrote (19248)	1/25/2000 2:46:00 AM
From: Michael P. Michaud	Read Replies (1) \| Respond to of 29970

Hot off the Red Herring Press! <<<Urban Media offers broadband as loss leader By Georgie Raik-Allen Redherring.com January 25, 2000 @Home (now Excite@home [Nasdaq: ATHM]) founders are launching a new venture to provide free broadband Internet access to small and medium-sized businesses. Urban Media executives hope offering broadband as a loss leader will lure customers to pay for a package of advanced voice and data services. The plan got two thumbs up from venture capital firms Softbank Venture Capital and Accel Partners, who ponied up $25 million Monday to get the business off the ground. Urban Media chief executive officer Sean Doherty says the company will need massive capital investment over the next few years, as it plans to wire large office buildings with a fiber-optic infrastructure to deliver communications services to tenants. Broadband-access software maker Broadjump lands a second round of funding. Different companies have different ideas for broadband content delivery. Broadband companies are finally pumping megabit returns into VC funds. It is a "huge task that is consuming most of the company's time," says Mr. Doherty. But once a building is complete, Urban Media has access to a number of long-term customers. "It's not as scalable as a dot-com business," Mr. Doherty admits. "But once you get the customers, it?s unlikely you will lose them. They are not as fickle as consumers." TEAM SPORT Urban Media has signed partnerships with several real estate companies and property management firms, including Liberty Property Trust, Prentiss Properties Trust, and Trammell Crow. Urban Media wires the building, and property managers market Urban Media's services to new and prospective tenants. Tenants can acquire services such as long distance and local voice-service, Internet access, web hosting, and managed email. "We are configured to be very close to the customer," Mr. Doherty says. "And we're linking value-added services to those pipes." Mr. Doherty says businesses will be eager to sign up for the services because it will be simpler and faster than waiting weeks or even months for established telecommunications providers to install their own services. Once the building is wired, tenants can instantly turn on any of Urban Media's services. The startup has partnered with a number of infrastructure, cable, and technology companies, such as Nokia (NYSE: NOK), Criticalpath (Nasdaq: CPTH), and Nortel Networks (NYSE: NT), to provide services. Cathy Gadecki, director of consulting at Telechoice, likes the strategy. "Many of today's on-site service providers are offering limited portfolios of traditional services," she says. "But Urban Media brings together a portfolio of cost-effective, high-speed communications, applications, and content services through a close community of partners." THE UNDERDOGS While other companies are wiring up office buildings to access customers, most are targeting the big-business market, leaving the small and mid-sized business market wide open. Analysts say only about 15 percent of those businesses have access to the Internet, providing a significant growth opportunity for Urban Media. Competitors include Allied Riser Communications, which went public in October, Cypress Communications, which is currently in registration, and Broadband Office, funded by Kleiner Perkins Caulfield & Byers........>>>