Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Frank A. Coluccio who wrote (1910)	8/17/1998 12:08:00 PM
From: Frank A. Coluccio	Respond to of 12823

Covad Communications Selected by The Red Herring as One of Top 50 Private Companies August 14, 1998 SANTA CLARA, Calif.--(BUSINESS WIRE) via NewsEdge Corporation -- Covad Communications Company, the first Packet Competitive Local Exchange Carrier (PCLEC) and a leading provider of digital communications services, noted that it has been named by The Red Herring as a member of the Herring 100 and one of the Top 50 Private Companies for 1998. The Herring 100 is an annual list comprised of 50 public and 50 private companies that are, according to the publication's editors, "the brightest stars of the Digital Universe: the technology companies that are defining their markets and changing the rules of business." In addition, today's local loop space is characterized as "a race at the first-mile mark, with one company (Covad) in the lead." The list, as well as a profile on Covad Communications, is included in the publication's September 1998 Digital Universe issue. Covad was also recently identified as one of the "Ten Start-ups to Watch " in the July 1998 issue of Telecommunications Magazine. Bob Knowling, president and CEO of Covad, commented, "To be labeled one of the top private companies is quite an honor, especially when one looks at the size of the field and the notable accomplishments of the companies considered. It's great to be recognized as a leader in our industry. We look forward to maintaining this position as we deploy our services across the country." About Covad Communications Company Covad Communications is a Packet Competitive Local Exchange Carrier (PCLEC) that provides digital communications services to corporations and Internet Service Providers that require greater bandwidth and better support to meet the needs of their internal and external customers. Covad was the first PCLEC to deliver its Digital Subscriber Line (DSL) based services to the market and is a leading competitive carrier focused on high-bandwidth data communications. Covad Communications' corporate headquarters are located at 2330 Central Expressway, Santa Clara, CA, 95050. For more information concerning Covad Communications Company and the TeleSpeed(SM) service visit: covad.com, or email sales@covad.com. Telephone: 408-490-4500 or 1-888-GO-COVAD; FAX: 408-490-4501. CONTACT: Covad Communications Company \| Lou Pelosi, 408/490-4549 \| lpelosi@covad.com \| or \| Sterling Communications, Inc. \| Erica Osman, 408/441-4100 \| eosman@sterlingpr.com

To: Frank A. Coluccio who wrote (1910)	8/17/1998 12:16:00 PM
From: Frank A. Coluccio	Read Replies (1) \| Respond to of 12823

No Choice Left For Near Video-On-Demand "...the announced merger of TCI and AT&T Corp. had no affect on the decision..." [A Moment of Silence, Please] August 17, 1998 Inter@ctive Week via NewsEdge Corporation : Two days after announcing a service expansion, Your Choice TV pulled the plug July 31 on its near video-on-demand service, saying it will cease operations on Aug. 30. Your Choice TV, a joint venture between Discovery Communications Inc. and Tele- Communications Inc., cited unfavorable market conditions as the reason for the decision to shutter the service, which had its commercial launch in Los Angeles in October 1997. Your Choice TV (www.yctv.com) is the only near video-on-demand (NVOD) service now in operation. On July 29, Your Choice announced a service expansion that boosted the number of channels available for its NVOD programming from six to eight. Your Choice also announced that it was consolidating its satellite broadcasts onto a single transponder on Headend in the Sky (HITS), the satellite operated by TCI. "We already had everything in place for the expansion," says Julie Lucas, vice president of communication at Your Choice. The move has left some industry watchers puzzled. "This shutdown is very surprising," says Larry Gerbrandt, senior analyst at Paul Kagan Associates Inc. "Given that they've been steadily acquiring programming and that they've improved their position in HITS, this news is very unexpected. It sounds like their buy rates were not high enough." Lucas acknowledges Your Choice suffered from lack of interest. "There's nobody to blame here except the marketplace, which at this time really isn't conducive to this type of business. The simple truth is that right now, the numbers just don't work. This really was a pretty straightforward business decision." Better Days After its commercial launch, Your Choice TV expanded into 27 markets, delivering time-shifted cable and broadcast programming 24 hours per day. The service -- presenting up to 30 different programs each day and about 100 different programs per week -- drew content from educational and documentary programs offered by Discovery Communications' cable networks and other sources. The service has been available to any local cable system operator with an upgraded digital plant. Your Choice TV has carriage deals with most major U.S. cable system operators, including Cablevision Systems Corp., Comcast Corp., Cox Communications Inc., Jones Intercable Inc. and TCI. "We've been in front of about 1.5 [million] to 2 million digital-capable homes," says John McCoskey, senior vice president of operations at Your Choice. "My best guess would be that, right now, we have a digital penetration in the range of 7 to 12 percent, which means maybe 75,000 subscribers." Just Not Enough Revenue from these subscribers has not been enough to offset the cost of programming and distribution, says Jim Boyles, senior vice president of corporate communications at Discovery Communications (www.discovery.com). "The business plan will work one day -- when digital shelf space is more widely available for a bandwidth-greedy service like Your Choice TV," Boyles says. "But in the short term, current losses make it unfeasible to continue." Boyles estimates those losses as being in the tens of millions of dollars. Your Choice officials downplay the impact of other deals made by Discovery and TCI (www.tci.com) on the decision to close down the service. Discovery's new programming relationship with the CBS network does not involve reallocating resources from Your Choice, according to Boyles. Lucas adds that the announced merger of TCI and AT&T Corp. had no affect on the decision. Closing down Your Choice was a "consensus decision" among the service's partners, says Larae Marsik, a TCI spokeswoman. "It was based solely on the fact that the business model is not sustainable in this environment today." Part of the marketplace problem is the low early penetration rates for digital cable services, Marsik says. Rising programming costs also hurt Your Choice, she adds. Not Giving Up On NVOD Even with the shutdown, Your Choice's backers say they're not giving up on NVOD services. "The time-shifting concept itself is viable," Marsik says. "People want more choice and more control over TV." "We've already proven the basic proposition that there is a business here, " Boyles says. "The tests and trials of Your Choice TV in dozens of markets since 1994 have shown that access to time-shifted TV shows is an excellent complement to pay-per-view movies and that the revenue from NVOD TV shows could equal the middle range of pay-per-view movie offerings." Your Choice officials say the service will be relaunched once market conditions become more favorable. "Think of Your Choice TV as the Cadillac of the new digital cable services," Lucas says. "The vehicle itself is still powerful, but the road conditions are not yet good. We're just going to park the Cadillac in the garage for a few years and see what happens." <<Inter@ctive Week -- 08-14-98>> [Copyright 1998, Ziff Wire]