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To: Albert Cupo who wrote (7399)	3/8/1999 2:48:00 PM
From: Don Hand	Read Replies (3) \| Respond to of 21143

US west - NCI and Intertainer VOD zdnet.com U S West Readies Video-On-Demand By Karen J. Bannan March 8, 1999 8:43 AM ET U S West is looking to hit cable companies where it hurts: their video subscriber base. The company this month is set to roll out video-on-demand (VOD), along with its previously announced Very High Data Rate Digital Subscriber Line (VDSL) service, in Phoenix. In addition, it is running VOD trials in Boulder and Denver, Colo., using technology from Network Computer Inc. and Intertainer. "This is a natural progression for U S West. The phone companies need to push into services other than just voice or data," said Abhi Chaki, senior analyst at Jupiter Communications. Although details have not been released, sources said U S West is using the same technologies to deliver video-on-demand as those used by the Intertainer service. Intertainer, which is scheduled to launch commercially later this year, allows users to access full-motion video and audio on a PC. "U S West is a minority investor in Intertainer, so it makes perfect sense for them to leverage that investment," a source familiar with U S West's plans said. The VOD trials in Boulder and Denver initially will run over Asymmetric Digital Subscriber Line, an access service that works on traditional telephone lines, but soon they will migrate to VDSL, a faster Digital Subscriber Line service, later in the year, according to Jonathan Taplin, Intertainer's co-founder and chief executive officer. The service will use a set-top box that is powered by NCI's TV Navigator software. The U S West service is designed to give users instant access to more than 120 movies, 200 music videos and related e-commerce sites, Taplin said. The initiative will be compatible with televisions and PC/TVs, he added. "This has been a long time coming. Our trial has been very successful so far. U S West has more than 400,000 users in Phoenix, so we see it as a real opportunity," Taplin said. An NCI spokesman also confirmed his company is working with U S West on VOD, but he said there are no deals pending. In other U S West news, the company, along with NCI, last week announced its new integration service, @TV, that lets users answer the phone, check e-mail and watch TV - all from one set-top box. The box features NCI's TV Navigator browser software and a speakerphone. The @TV service will be rolled out later this year in the 14 states where U S West has a presence, officials said.