Here's some info on HSAC's competition,
We face competition in two primary areas: (i) competition for partnerships
with cable operators from other cable modem-based providers of Internet access
services and (ii) competition for end users from providers of other types of
data and Internet services.
We believe the major competitive factors in the market for partnerships
with cable operators include breadth of service, speed and ease of deployment,
revenue sharing arrangements, cash and equity incentives and operating
experience. We believe the major competitive factors in the market to provide
high speed Internet access to end users include financial, marketing and sales
resources, established customer relationships, price, ease of access and use,
transmission speed, reliability of service, quantity and quality of content,
network security and customer support. Moreover, due to intense competition,
there may be a time-limited market opportunity for our cable-based high speed
access. There can be no assurance that we will be successful in achieving
widespread acceptance of our services before competitors offer services similar
to our current offerings, which might preclude or delay purchasing decisions by
potential customers.
For the reasons discussed below, we may not be able to compete successfully
against current or future competitors, and competitive pressures we face could
materially and adversely affect our business and financial results.
Cable-Based Internet Access Market. Our competitors in the cable-based
Internet access market are those companies that have developed their own
cable-based services and market those services to cable system operators. In
particular, @Home, RoadRunner, the ISP Channel, Online System Services, Inc. and
Convergence.com (and their respective cable partners) are deploying high speed
Internet access services over cable networks. @Home, through its @Home Solutions
product, has begun to market to systems in the exurban market with at least
20,000 homes passed. We also compete directly with the ISP Channel and
Convergence.com in seeking to establish distribution arrangements with cable
system operators in
exurban markets and/or provide one-way system capability. In addition, other
cable system operators have launched their own cable-based Internet services
that could limit the market for our services. Many of our competitors and
potential competitors in the market for partnerships with cable operators, in
particular @Home and RoadRunner, have substantially greater financial, sales and
marketing resources, larger customer bases, longer operating histories, greater
name recognition and more established relationships with cable operators,
advertisers and content and application providers than we do.
Other Technologies. Long distance inter-exchange carriers, such as AT&T,
Sprint and MCI WorldCom, have deployed large-scale Internet access networks and
sell Internet access to business and residential customers. The regional Bell
operating companies and other local exchange carriers have also entered this
field and are providing price competitive services. Many of these carriers are
offering diversified packages of telecommunications services, including Internet
access, to residential customers, and could bundle these services together,
which could put us at a competitive disadvantage. Many of these competitors are
offering (or may soon offer) technologies that will compete with some or all of
our high speed data service offerings. Such competing technologies include
integrated services digital networks and digital subscriber lines. Many of our
competitors and potential competitors, particularly regional Bell operating
companies, have substantially greater financial, sales and marketing resources
than we have, and also may compete favorably in terms of price, ease of access
and use, transmission speed and reliability of service. Other potential
competing technologies now being deployed for high speed access include wireless
and satellite data services. Widespread commercial acceptance of digital
subscriber line or other competing technologies could significantly reduce the
potential customer base for our services, which could have a material adverse
effect on our business and financial results. Additionally, as a result of the
distribution of the Darwin common stock to our current stockholders, with the
exception of the warrant we will receive from Darwin, the benefits of providing
this service will no longer accrue to our stockholders.
Internet and Online Service Providers. We also compete with traditional
Internet service providers, which provide basic Internet access to residential
and commercial end users and businesses, generally using existing telephone
network. While not offering the advantages of broadband access, these services
are widely available and inexpensive. Indeed, Internet service providers
recently have announced free Internet access services. Many online service
providers, such as America Online, have the advantage of large customer bases,
industry experience, longer operating histories, greater name recognition,
established relationships with advertisers and content and application
providers, and significant financial, marketing and sales resources. Moreover,
America Online recently announced alliances with SBC Communications and Bell
Atlantic to offer AOL's services via digital subscriber line connections to be
installed by these regional Bell operating companies. The pace at which AOL and
its telephone company partners roll out DSL service could limit our ability to
attract and retain end users in areas where our service offerings overlap.
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