BC: CURRENT COMMUNICATIONS LLC
More on BPL ( broadband over powerlines )
Watch for the IPO on this one ..
Cinergy and Current Communications to Offer Broadband Services over Power Lines
Tuesday March 2, 9:00 am ET
CINCINNATI--(BUSINESS WIRE)--March 2, 2004--Cinergy Broadband, LLC, a subsidiary of Cinergy Corp. (NYSE:CIN - News), and Current Communications Group, LLC announced today they are beginning to offer broadband over power line (BPL) services in the greater Cincinnati, Ohio area. A subsequent expansion is planned for Northern Kentucky and Indiana.
Cinergy Broadband and Current have formed a joint venture that will roll out broadband services under the brand Current Communications(TM). Initially, these services will consist of high-speed internet and will eventually be bundled with voice over IP (VoIP). Current will manage the venture, which will build and operate the BPL network and provide marketing, customer support and back office functionality. The BPL network will be deployed on electric distribution infrastructure using proven, proprietary BPL equipment and technology from Current's subsidiary, Current Technologies, LLC.
The companies have also created a second joint venture to pursue the deployment of BPL to targeted municipal-owned power companies and rural electric cooperatives across the United States. This joint venture will be managed by Cinergy Broadband and will market Current's BPL technology to its target customer utilities.
In addition to the joint ventures, Cinergy has made an investment in Current as part of a larger round of financing. In the financing, Current's existing investors, Liberty Associated Partners, LP and EnerTech Capital, LP, have each contributed additional capital. The aggregate amount of financial commitment to Current and the BPL ventures by all parties in these transactionsexceeds $70 million.
The decision to roll out broadband services, initially in southwest Ohio and northern Kentucky, follows a trial of the technology and broadband service offering with more than 100 residential customers and several business customers in the Hyde Park area of Cincinnati. The trial produced high customer satisfaction and a strong interest in enrolling in the commercial service.
For Internet users, Current's BPL service offers:
"Always on" high speed Internet access from power outlets throughout the home or business
Upload and download access at the same speeds using readily available, off-the-shelf HomePlug® power line modems
Local area networking from all power outlets over existing electrical wiring
Faster speeds (in excess of 3 mbps) at lower monthly cost than other broadband services
Multiple speeds and pricing plans to meet individual needs and budgets
Truly "Plug and Play" installation and activation within minutes
All with no need to add any in-home wiring
"Customers will be amazed at the speed, low cost and reliability of BPL, as well as its ease of use," said William J. Grealis, executive vice president of Cinergy and president of Cinergy Broadband.
"We are extremely excited to have the opportunity to partner with Cinergy and provide consumers with the newest generation of broadband services," said Ronald Boillat, President and COO of Current Communications Services, LLC, Current's broadband services subsidiary.
Broadband services are being offered to consumers and small businesses initially in Hyde Park. Other areas where the service will be offered over the next six months are expected to include Wyoming, Delhi and Terrace Park, as well as other communities in and around Cincinnati. Customers will receive mailings announcing availability in their area as the service is rolled out.
Cinergy and Current also will use Current Technologies(TM) BPL equipment to implement important new services that will provide improved reliability and increased efficiency for Cinergy's utility subsidiaries and their customers. BPL technology can enable a variety of enhanced power distribution applications, including:
Automated outage detection and restoration confirmation
Remote monitoring and operation of switches and transformers
Remote capability to connect and disconnect electric service
More efficient demand-side management programs
Automated meter reading
Cinergy has a balanced, integrated portfolio consisting of two core businesses: regulated operations and energy merchant. Cinergy's regulated delivery operations in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated operations own 7,000 megawatts of generation. Cinergy's energy merchant business is a Midwest leader in low-cost generation owning 6,300 megawatts of capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. The "into Cinergy" power-trading hub is the most liquid trading hub in the nation.
Current Communications Group, LLC is a privately held company based in Germantown, Maryland. Current develops innovative power line equipment and technology for delivering broadband services over power lines. Current is backed by Liberty Associated Partners, LP, Enertech Capital and Cinergy. Liberty Associated Partners is a private investment fund focusing on private equity investments in telecommunications, media, Internet and related technology companies and is managed by the Associated Group, LLC. Enertech Capital is a private equity firm that invests exclusively in service and technology companies emerging from and capitalizing on the reshaping of the energy, utility, and telecommunications markets. Many of the investors in Enertech Capital's funds are major U.S. and international utilities.
Contact:
Cinergy Corp.
Steve Brash, 513-287-2226 (w) 513-231-6895 (h)
Kathy Meinke, 513-287-2121 (w) 513-481-6137 (h)
Website: www.cinergy.com
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