Rhythms Canada Completes Record-Setting Year; Joint Venture Now Includes
Service in Four Canadian Markets
ENGLEWOOD, Colo., Jan 10, 2001 /PRNewswire via COMTEX/ -- Rhythms Canada Inc.,
one of the leading digital subscriber line (DSL) alternative service providers
in Canada, recently finished an unprecedented year. Rhythms Canada, a 50/50
joint venture between Rhythms NetConnections Inc.(TM) (Nasdaq: RTHM) and AXXENT
Corp., a wholly owned subsidiary of Axxent Inc. (Toronto: AXI.b), now offers
service in four Canadian markets.
Rhythms Canada's first market, Toronto, became operational in May of 2000. Since
then, Montreal, Ottawa, and Hamilton have become service ready. Rhythms Canada
has built DSL services in 127 central offices, and currently has over 1,300
subscribers on its network.
"In a short time, Rhythms Canada has become a leading provider of competitive
DSL services across Canada," said Scott Chandler, Senior Vice President of
Global Business Development at Rhythms NetConnections and Chairman of the Joint
Venture Advisory Board. "We have validated the original vision of the venture --
to create a cost-effective DSL network in Canada. The joint venture between
Rhythms NetConnections and AXXENT has exceeded expectations to date and we look
forward to helping Rhythms Canada add subscribers to its pan-Canadian network in
2001."
Rhythms Canada markets high-speed access services through channel partners such
as Internet service providers and application service providers, as well as
directly to enterprise customers.
About Rhythms Canada
Based in Toronto, Rhythms Canada Inc. is a leading provider of Digital
Subscriber Line (DSL)-based broadband communication services to businesses
across Canada. Delivering high-speed access services directly to enterprise
customers and through channel partners such as Internet Service Providers (ISPs)
and Application Service Providers (ASPs), Rhythms Canada provides businesses
with a variety of DSL options guaranteeing affordable, "always on" connections
to the Internet and to corporate networks. A 50/50 joint venture between AXXENT
Corp., a wholly-owned subsidiary of Axxent Inc. (Toronto: AXI.b) and Rhythms
NetConnections Inc. (Nasdaq: RTHM), Rhythms Canada is currently spearheading
construction of the first North American-wide DSL data network. For more
information about Rhythms Canada, visit the company's Web site at
www.rhythmscanada.com.
About Rhythms
Rhythms NetConnections Inc. (Nasdaq: RTHM) provides DSL-based, broadband
communication services to businesses and consumers. Based in Englewood, Colo.,
Rhythms currently serves 60 markets, covering 97 MSAs. Telecommunications
services for Rhythms are provided by Rhythms Links Inc., a wholly owned
subsidiary of Rhythms. For more information, call 1-800-RHYTHMS
(1-800-749-8467), or visit the company's Web site at www.rhythms.com.
Rhythms, Rhythms NetConnections and (any product names for which trademark
applications have been filed) are trademarks of Rhythms NetConnections Inc.
Unauthorized reproduction, preparation of a derivative work, distribution,
public display or performance, storage in any information retrieval systems, or
transmission of this copyrighted work, in whole or in part, may subject the user
to civil liability and/or criminal penalties.
The statements contained in these materials which are not historical facts may
be deemed to contain forward-looking statements with respect to events, the
occurrence of which involve risks and uncertainties. In accordance with the
Private Securities Litigation Reform Act of 1995, the following are important
factors that could cause Rhythms' actual results to differ materially from those
expressed or implied by such forward looking statements. There can be no
assurance that Rhythms will be able to maintain or accelerate its growth rate
given the highly competitive nature of its market, its short operating history,
the unproven nature of its business model and the fact that the DSL market
itself is still relatively new and evolving. The DSL market is highly
competitive, with several large established industry competitors who have
significantly greater financial resources than Rhythms, and the
telecommunications industry in general is undergoing rapid technological change.
Rhythms expects its losses to continue and such losses may fluctuate
significantly from period to period due to the amount and timing of expenditures
related to the expansion of its services and infrastructure and the rate of
customer acquisition and turnover. The sales cycle for new customers and the
development cycle for new products and applications can be lengthy. Rhythms'
agreements with its customers generally do not assure that Rhythms will generate
a certain amount of revenue, do not designate Rhythms as its exclusive provider
and are terminable by the clients on relatively short notice. Several of
Rhythms' customers are young, emerging companies that are not fully funded and
have ongoing financing requirements. Rhythms' services may not achieve
significant market acceptance because its prices are often higher than those
charged for competing services. Rhythms' dependence on incumbent carriers for
collocation and transmission facilities and its inability to control the terms
and conditions under which Rhythms can gain access to incumbent carrier
collocation and transmission facilities may cause shortfalls in its business
objectives. Rhythms will continue to encounter government regulation that may
restrict its timing or extent of market deployment and ultimate financial
success. Rhythms' substantial debt and preferred stock obligations create
financial and operating risks and there can be no assurance that it can satisfy
its debt and/or preferred stock obligations, covenants or be able to obtain
adequate financing to fund future initiatives. Current market conditions are not
favorable to obtaining additional financing. The reliance on third parties for
certain sales and marketing activities, for equipment installation and for fiber
optic transport facilities creates significant risk of non-performance and may
adversely affect Rhythms' financial results. The success of Rhythms' business
and its ability to execute its business plan are both reliant, in part, on its
ability to retain and attract key personnel. Rhythms' principal stockholders and
management own a significant percentage of Rhythms and may have the ability to
exercise significant influence over Rhythms. Readers are encouraged to review
Rhythms' recent filings with the Securities and Exchange Commission, including
"Risk Factors" contained in these documents. Descriptions of risk factors are
not intended to be complete. Rhythms undertakes no obligations to review or
confirm analysts' expectations or estimates or to release publicly any revisions
to any forward-looking statements after the date hereof or to reflect the
occurrence of unanticipated events.
SOURCE Rhythms NetConnections Inc.
CONTACT: Chris Hardman, Public Relations, 303-476-4259,
chardman@rhythms.net, or Karen Breen, Investor Relations, 303-876-2611,
kbreen@rhythms.net, both of Rhythms NetConnections Inc.
URL: rhythmscanada.com
rhythms.com
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(C) 2001 PR Newswire. All rights reserved.
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KEYWORD: Colorado
Ontario
INDUSTRY KEYWORD: TLS
SUBJECT CODE: JVN
STOCK SYMBOLS: [(rthm)]\ [(axi.b.)] |
