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Monday January 12, 3:32 pm Eastern Time
NextLevel Announces Retail Launch of Surfboard High-Speed Cable
Modems
CompUSA to Offer Modems in Select Markets Served by MediaOne, Adelphia, and
Daniels Cablevision
SAN DIEGO, Jan. 12 /PRNewswire/ -- NextLevel Systems, Inc. (NYSE: NLV - news), which is changing its
name back to General Instrument Corporation, announced today the retail launch of its SURFboard(TM)
high-speed cable modems. CompUSA (NYSE: CPU - news), America's Largest Computer Superstore(R), is the
first retailer to offer GI's cable modems, which provide Internet access at speeds up to 50 times faster than a
traditional 28.8 modem.
GI is working with several cable television operators to offer its SURFboard cable modems through CompUSA
Computer Superstores in those service areas equipped to offer cable-delivered, high-speed Internet service.
Now subscribers can test drive and purchase SURFboard cable modems directly from CompUSA locations. The
participating locations feature live high-speed Internet demonstrations using the SURFboard cable modem. On
Saturday, January 10, CompUSA's Jacksonville, Fla. location became the first to offer SURFboard cable
modems. By mid-February, CompUSA stores in Miami, Florida and Encinitas, California will also offer the
SURFboard cable modem.
MediaOne, the nation's largest broadband services provider, is the first to support the retail launch, with its
MediaOne Express high-speed Internet service in Jacksonville. Fla. The Jacksonville CompUSA sells GI's
SURFboard cable modems and uses MediaOne Express and the modems in its Superstore Training Center.
MediaOne's Jacksonville service area, with 400,000 homes passed, has been offering its MediaOne Express
high-speed Internet service using SURFboard cable modems for over one year. CompUSA locations in other
MediaOne service areas will be added to this retail program.
''Now customers can choose between leasing their cable modem from MediaOne or buying their modem from
CompUSA. The benefit of buying your modem is saving 20 percent on high-speed Internet charges,'' said Mark
Kelly, Southeast Director, MediaOne Express.
Adelphia Communications Corporation [Nasdaq:ADLAC - news], the seventh largest cable company in the U.S.,
and an aggressive provider of communications services including high-speed Internet access, long distance
telephone, paging, and security services, supports the January retail launch of GI's SURFboard cable modems
with CompUSA in Miami, where Adelphia passes 140,000 homes. Adelphia will provide modem purchasers
with its Power Link high-speed Internet access service. Power Link subscribers have been using SURFboard
cable modems since February 1997. Adelphia currently offers high-speed Internet access to nearly half of the
approximate 2 million homes it serves, in 6 of the 12 states in which it offers cable TV service. Adelphia, in
1998, plans to continue to actively launch its Power Link service in the remaining states in which it offers cable
TV service.
''We are pleased to support GI/CompUSA's retail launch of the SURFboard cable modem through our Power
Link product. At Adelphia, we fully recognize in a competitive communications environment the necessity to
explore new distribution channels for all our products and services -- Power Link, long distance telephone,
paging, and security services. Retail is clearly one of the more effective channels,'' said John Wattick, Director
of Product Development at Adelphia Communications.
The Encinitas CompUSA Computer Superstore will offer modems served by Daniels Cablevision and its I-Net
Express high-speed Internet service. The Daniels Cablevision system passes 68,000 homes. Launched in
December 1997, I-Net Express will have an early advantage in attracting additional subscribers through the
availability of GI's SURFboard cable modems at retail.
''The availability of the SURFboard cable modems at CompUSA is a great convenience for our customers and
dramatically increases the visibility of Cablevision I-Net Express with our target market,'' said Joni Odum,
president and general manager of Daniels Cablevision. ''It enhances the credibility of our service to be working
with CompUSA and sets the stage for the standardization of the retail offering of cable modems throughout the
industry, a key factor in increasing the availability of cable modems nationally.''
''The launch of GI's SURFboard cable modems into CompUSA is an important milestone for cable modems as a
product category,'' said Tom Lynch, Vice President and General Manager of the Satellite Data Networks unit of
General Instrument. ''There has been much talk about the consumer's demand for high-speed Internet access. With
cable modems in the retail channel, the cable industry will now have an opportunity to deliver on the promise of
the broadband pipe into the home, and its digital, interactive, and multimedia capabilities.''
Since September 1996, General Instrument has sold its SURFboard cable modem to cable TV operators, who in
turn make the modems available to subscribers through a bundled high-speed Internet service/hardware lease
program, much like set-top boxes and cable-delivered video services. General Instrument has now moved to a
retail distribution program in anticipation of selling standardized cable modems based on the Multimedia Cable
Network System (MCNS) specification by year end. Developed by cable industry leaders, the MCNS
specification is intended to ensure availability of low-cost, interoperable cable modems that are ready for mass
market distribution.
CompUSA will initially carry General Instrument's SURFboard cable modem model SB1000. A half-size ISA
card, the SB1000 fits into a personal computer to deliver high-speed Internet access over a standard cable
channel at speeds up to 1.5 Mbps. This is 50 times faster than a conventional 28.8 telephone modem. This
telco-return modem has been available since September 1996 through cable TV operators. Telco-return refers to
the upstream communications via a telephone modem. The downstream communications travel over the cable
network to the cable modem-equipped PC. Last fall, @Home announced that it had selected GI as a preferred
vendor for telco- return modems, including the SB1000. GI plans to offer its first two-way MCNS-compliant
SURFboard cable modem, model SB2000, in the retail channel by year end. With this state-of-the-art cable
modem, the cable network handles both upstream and downstream communications.
CompUSA Inc. is one of the nation's leading retailers and resellers of personal computers and related products
and services. The company currently operates 148 CompUSA Computer Superstores in 67 major metropolitan
markets across the United States, which serve retail, corporate, government and education customers and include
technical service departments and classroom training facilities.
MediaOne is the nation's leading broadband services company, providing entertainment, information, and
communications services to more than 5.1 million customers in 19 states. MediaOne Group (NYSE: UMG -
news), formerly U S WEST Media Group, one of America's largest broadband communications companies, is
involved in domestic and international cable and telephony, wireless communications, and directory and
information services. For 1996, MediaOne Group had proportionate pro forma revenue of $8.1 billion.
MediaOne Group is one of two major groups owned by parent company U S WEST, Inc. The other major group
is U S WEST Communications, which provides telecommunications services in 14 Western and Midwestern
states. U S WEST has proposed splitting the two groups into separate public companies sometime after
mid-1998, pending shareowner and other approvals.
Adelphia Communications Corporation, founded in 1952, has grown to become the seventh largest cable
television company in the U.S., serving nearly 2 million customers in 12 states. In the last eighteen months,
Adelphia has made a concerted effort to expand into a full-service communications and technology provider,
becoming ''Adelphia -- Your Link. For Everything.'' Adelphia's current business operation included cable
entertainment; high-speed Internet access; long distance telephone service; paging and security.
Daniels Cablevision provides cable television service to seven communities in north San Diego County. It is
owned by Bill Daniels, an industry leader and pioneer who is widely recognized as the ''Father of Cable
Television.''
General Instrument Corporation is the world leader in analog and digital systems that provide video, audio and
high-speed Internet/data services over cable and satellite television networks. Last month, GI announced that
major cable operators expect to purchase at least 15 million of GI's advanced digital set-top devices over the
next 3-5 years at an estimated value of $4.5 billion. Last week, GI announced a strategic alliance with Sony
which would include the purchase by Sony of 7.5 million new GI common shares at a price of $25 per share.
GI's cable and satellite TV operations have approximately 7,000 employees and annual sales of approximately
$1.8 billion. With the name change to General Instrument Corporation, the Company's ticker symbol on the New
York Stock Exchange will be changed to GIC from NLV on or about February 2, 1998.
SOURCE: NextLevel Systems, Inc.
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