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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Terry Berg who wrote (3498)	11/29/1997 10:45:00 AM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

Terry, Digital cable modems will be an important part of Zenith's NCTV strategy. Zenith recently obtained an excellent cable-modem contract (up to 40,000 modems and other electrical components) from 21st Century Cable for Chicago's residential and commercial customers. From the press release: "This high-technology relationship maximizes the innovative attributes of 21st Century's $200 million distributed ring-star (DRS) network, and Zenith's proven cable modem technology to allow 21st Century to dramatically differentiate itself from traditional cable and telecommunications providers. "The Zenith HomeWorks cable modem is a powerful device that will link our customers' personal computers to our world-class network," stated Glenn Milligan, 21st Century's president and CEO. "21st Century's customers will finally experience the Internet in the time-efficient, utilitarian and convenient manner originally conceived, but heretofore seldom delivered," he said. "Our users can watch cable television, interactive data channels, and listen to specialty audio services over the same cable that allows them to simultaneously surf the World Wide Web. Soon, those same 21st Century customers will be receiving a host of other unique services from that single connection to our exclusive network." Milligan added, "21st Century is providing Zenith access to its leading edge network and laboratory test facilities as, together, we bring new cable modem services to market in a timely, seamless manner." 21st Century will utilize Zenith's cable modem technology to connect users to the Internet at symmetrical speeds of up to 4 Mbps or more than 275 times faster than a standard 14.4 kbps telephone modem. As an example, a file or video clip that would take approximately a half- hour to download with the traditional telephone modem would only take seven seconds when connected to 21st Century's DRS network and the Zenith HomeWorks cable modem. Additionally, 21st Century's customers will enjoy free e-mail, access to newsgroups, chat sessions and instant access to as many as 1,000 of the most popular Web sites, cached in 21st Century's secure, state-of-the-art data operating center (DOC). William G. Luehrs, president of Zenith Network Systems added that 21st Century's innovative DRS system architecture is "ideally suited" to Zenith's cost-effective cable modem and head end technology. "The system's very high-speed 'fiber to the node' design will unleash the power of the Internet for business and residential users alike," he stated. 21st Century's high-speed Internet access service is priced at $49.95 per month for unlimited access, including the HomeWorks cable modem. Significant discounts are available to customers if this Internet service is purchased in combination with 21st Century's cable television or other telecommunications products. In preparation for this month's service launch, 21st Century has activated its advanced Network Operating Center (NOC) at its corporate headquarters on the sixth floor of the World Trade Center - Chicago. By combining its entrepreneurial company philosophy with its unique "clean sheet" network, 21st Century has emerged to carve out its own niche as the industry's first competitive communications provider (CCP)." ------------------------------------------------------------------- Terry, I think there is a lot more coming. The advantage Zenith has over many network systems and CE competitors is that Zenith has the ability to provide a total "digital package". Once the cable (or satellite, MMDS, broadcast) feed gets into the home, Zenith will offer a complete hardware and software package to provide the consumer with HDTV, SDTV, analog TV, Intenet access, VOD and downstream communications. Zenith won't make big bucks selling $200 cable modems but when you add on the STB, the monitor(s), the Divx players, etc., the package becomes very profitable. My read is that 21st Century will be the first cable system to offer HDTV/SDTV to its subscribers as well as to provide simultaneous TV and Internet transmissions, at speeds up to 4 Mbps. With 40,000 cable modems sold, there exists a great market for an equal amount of new Zenith STBs, monitors and Divx players along with stand-alone digital TVs. 21st Century also is expected to expand into other metropolitan areas and, hopefully, Zenith will remain 21st Century's "best of breed" cable modem/CE partner.