To: Peter V who wrote (33696 ) 6/8/1998 5:33:00 PM From: John Rieman Respond to of 50808
Zenith boxes used in Atlanta MMDS system...........................multichannel.com Hartman said one of the benefits of entering a new market with MMDS technology is that the company can blanket a city with the technical ability to serve the market much quicker than would be possible with wireline technology. "Clearly, the speed is very attractive with MMDS," he said. "And you only have to invest in customer homes, not in every home passed." BellSouth's new service will offer competition to local cable incumbent MediaOne, which is in the midst of a network upgrade in Atlanta. According to spokesman Dave Wood, the rebuild is expected to be completed by late 1999. "We welcome the competition," Wood said, adding that MediaOne has been expecting BellSouth's entry into the Atlanta market. "This is what the lawmakers and regulators intended with the Telecommunications Act of 1996." In addition to video, the two companies will also compete for telephone and Internet customers in Atlanta. Wood said the BellSouth service won't be universally available to everyone in the Atlanta market because not everyone will have a good line of sight. "From a reliability standpoint, we feel that MediaOne is superior," he added, pointing to the possibility of weather problems with the wireless technology. Hartman said that from a technical point of view, digital-wireless technology exceeded the company's expectations. He added that the service has not run into weather or atmospheric problems.The Atlanta service uses a digital-wireless set-top box from Zenith Electronics Corp., which faces serious financial problems. But Andrew Kreig, president of the Wireless Cable Association, said, "It is my understanding that Zenith's digital-wireless business is quite vibrant and healthy, whatever the larger concerns might be with the television-manufacturing side of the business."