I I ..... I 11i1~ I •• CCMJ/SaLestar _ I I I I I I Competitive Intelligence Report I Broadband Services I San Francisco. CA • July 200 I• Residential Market I I I I I • • • • • • • CCMIISaiestar • II 300 Rockville Pike. Suite JJ00 Rockville. MD 20852 • Telephone: 888-275-2264 Fax: 301.e I6-8945 • www.cs;mj com • •
• Infc,..".tion SIoIb;ect to ct\ana:. without notlca.Tl\Is publication IT1IY nat btt .-.produced.sold or used in ln7' form or by any munl -zraphtcs. or • el-etron;c,indltdinc p/'Iotocop)'inc. lcannm,.or infornoation stor'Ip and,..,.....t sysums - without written permission of CCMIlSaIatar- . • Copyri,ht 2001 CCMllSalestar-A11 rJehu,...,.ved
FOR PUBLIC INSPECTION FCC4A000000360 "------I I • CCMl/Salestar I TABLE OF CONTENTS I Executive Summary...... 2 I Market Insights 5 I Competitive Insights 9 Competitive Product Matrix.. " '" " " 20 I DSL Providers .. " " " '" " 21 AT&T I DirecTV EarthLink I Pacific Bell Prodigy I Speakeasy I Cable Modem Providers '" " 25 Adelphia I AT&T (@Home) RCN I Fixed Wireless Providers ' 26 AOL (DirecPC) I EarthLink (DirecPC) Competitive Product Analysis '" '" 27 I Adelphia 28 I AOL (DirecPC) 29 AT&T 30 I AT&T (@Home) 31 DirecTV 32 I EarthLink ," '" 33 EarthLink (DirecPC) 34 I Pacific Bell. : 35 I Prodigy 36 RCN 37 I Speakeasy '" , 38 About CCMIISaieslar 39 I • • • • • • • San Francisco Broadband - July 2001. • C 2001 CCMIlSalcs..... All riohu mervcd. • FOR PUBLIC INSPECTION ------FCC4A000000361 I I I • CCMl/Salestar I I I I I EXECUTIVE SUMNlARY I I I I I I I I I I I I I I I I • • • • • San FrlDCisc.o Broadbuwl-JuJy 2001, C 200 I CCMlISa1cItar. All ripu reserved, • 2 • FOR PUBLIC INSPECTION FCC4A000000362 _._ .. _------I I I • CCMl/Salestar I EXECUTIVE SUMMARY I I Until the last quarter of2000, San Francisco remained a strong center for technological services within I the United States. The climate for telecommunications services demand could not have been more favorable. Though the local economy has traditionally been based on tourism, banking, and trade, the I region experienced strong growth within the high-tech arena with the advent of the "dot-com" I phenomenon. San Francisco became known as the center ofthis new "dot-com" world and numerous I broadband service providers sought dominance in this market. I I The beginning of 200I brought a new business environment. The thriving San Francisco economy slowed in the wake of a severe stock market adjustment and the energy crisis. However, the high I technology job market remains tight and employee turnover remains high. At the very least, I unemployed technological workers need broadband technology to effectively consult, network, and I further develop their skill sets. I I Thus, the consumer market in the Bay Area remains steady for broadband deployment. As the home of I Cisco and many of the largest data equipment vendors, the San Francisco Bay Area will continue to experience demand for high-speed Internet access demand despite excessive equipment inventories. A I popular ISP, Megapath, deploys its national business broadband services directly out of the city of I Pleasanton, a suburb of San Francisco. AT&T has recently purchased the assets of NorthPoint I Communications, based locally, for further expansion in this area. With an astounding 69.1% of its I homes connected to the Internet, San Franciscans utilize broadband services, rather than dial-up, more than almost any other region in America. Finally, due to the dense number of residences, a DSL • deploying wire center is rarelytoo far for qualification. • • AT&T possessed many of the cable franchises within the MSA and has leveraged that in a piecemeal • fashion with its @Home high-speed Internet service. Excite@Home, based in the San Francisco suburb • of Redwood City, has just solidified its long-term agreement with AT&T. Look for this service to be offered to more consumers throughout the Bay Area (currently it has more customers in the East and • South Bay). However, AT&T also offers a DSL solution and has recently unveiled its digital telephony • offering within the East Bay. • San Francisco Broadband - J.tv 2001_ • e 2001 CCMIlSaJestar AU ·nihts reserved. • 3 FOR PUBLIC INSPECTION ------FCC4ADDDDDD363 I I I • CCMI/Salestar I I RCN has recently bought up cable franchises and has bundled in local voice and cable TV services for I customers as an alternative to Pacific Bell's local loop. Finally, EarthLink and AOL have branded I Hughes Network Systems' DirecPC fixed wireless offering and are using it to compete for users to avoid I DSL installation time and problems. I I In sum, wired workers may actually have a greater need for Broadband services than ever before as their former employers reduce their forces. However, there may not be as much disposable income for I expensive, experimental solutions as was the case last year. Except for RCN, new entrants have avoided I the residential market within San Francisco and a static competitive situation has developed. I I I I I I I I I • • • • • • • • • San .Franeisco Broedband - JlIly 200 I. • It, 200) CCMUSaJatar, AU ripm reserved. • 4 FOR PUBLIC INSPECTION FCC4A000000364 "--"------,I , • CCMl/Salestar I I I I I MARKET INSIGHTS I I I I I I I I I I I I I I I I I I I I • I
I San Francisco Broadband - July 2001. C 2001 CCMUSoJc.w. All riahu.-..d. I 5
FOR PUBLIC INSPECTION FCC4A000000366 I I I • CCMIISalestar I MARKET INSIGHTS I
I 1) Population I ""n I· ranri,,·o ( ounl) ('opulahon 1l"lrobulion h) \1:" ARe (Years) Total Population Composition (%) I r- Under 20 127,344 16.39 20-34 236,472 30.44 I 35-44 133,804 17.23 --.-' -- 45-54 107,718 13.87 I ---- 55+ 171,395 ._- -- 22.07 I TOTAL 776,733 100.00 I I San Francisco County Population Age Composition 55+ I 22% o Under 20 I 45-54 140/. .20-34 I 033-44 043-34 I ·33+ 35-44 I 17'1t I • San Francisco County's population, estimated in 2000, was 776,000 people I From 1990 to 2000, the population grew by 7.3 percent, ranked I,7041h out of3, 141 counties in I the US Approximately 49.7 percent ofthe population was White, 30.8 percent Asian, 14.1 percent I Hispanic or Latino origin, 7.8 percent was Black or African Americans, and 0.9 percent other I races I I 2) Income and Employment I The unemployment rate rose from 2.0 percent in May 2000 to 3.1 percent in May 2001 Mean annual earning was $46,700 in April, 2000, an increase of 1.5 percent from June 1999 I Job growth has increased about 2.6 percent from May 2000 to May 2001 M I • The projected job growth for the next 10 years is approximately 10 percent, ranked 263 , as compared to the nationally projected average of 15.1 percent I I
San FrlllciJro Broadblllld - July 2001. I o 200 I CCMIISalcstar. All ripts rcxrvcd I 6
FOR PUBLIC INSPECTION -_._------FCC4A000000366 I I I • CCMl/Salestar I I 3) Cost of Livtng and Quality of Life • In 2000, San Francisco has a violent crime rate of630.1 and a property crime rate of3873.5 per I 100,000 people, above the national averages of506 and 4329 respectively I For 2000, the city had a Cost ofLiving Index of 187.1, higher than the national average of104.0 Health Cost ofIndex was 148 for 2000, higher than the national average of 103 I • San Francisco is rated very well compared to other cities in terms ofboth the Leisure (number of I parks, recreational activities, ocean coastlines, etc.) and Arts (number ofmuseums, symphonies, theaters, opera, dance, performances, etc.) Indexes with scores of79 and 58, ranked 4th and 3M I respectively; national average for these scores are 19.42 and 11.48 I
I 4) Internet I • As ofMarch 200I, San Francisco was ranked the third most wired city in the US by NielsenlNetRatings with 69.1 % of households having access to the Internet from a personal I computer; Portland and Seattle ranked I" and 2nd respectively • San Francisco ranked IOth for total capacity ofall Internet backbone links to other metropolitan I areas as share ofemployment I • Ranked 2nd for domain density, 2.17, (".com") per total number ofbusinesses • San Francisco ranked 27th with 68 percent ofchildren using computers in the classroom, above I the national average of63 percent I I 5) Labor Force I Computer engineering is the fastest growing occupation in San Francisco; Managerial, th I professional and technical jobs constitute 40 percent ofthe labor force, rank 14 nationally • Ranked 2nd nationally for having the highest percentage ofthe workforce with advanced degrees, I bachelor's degrees, or some college course work, behind only Washington DC • In 1999, 80 percent ofpeople older than 25 years old had graduated from high school and 42 I percent had a bachelor's degree or higher I • High-Tech jobs constitute 8.6% oftotal employment, ranked 2nd nationally I I 6) Travel and Trade I San Francisco receives over 20 million visitors each year, 16.2 million domestic visitors and 4 I million international visitors Tourism is San Francisco's top industry and visitors to San Francisco spend over $6.5 billion • annually • I San Francisco BrtNldband -JWY 2001. 10 2001 CCMUSalestar. All riabll reserved. I 7
FOR PUBLIC INSPECTION FCC4ADDDDDD357 -_..._------I I I • CCMl/Salestar I I Injormtltion Sources: 1) Atkinson, Robert D., Ph.D., and Paul D. Gottlieb, Ph.D. "The Metropolitan New Economy Index", I www.neweconomyindex.org, downloaded June 29, 2001.
I 2) Best Places to Live 2000: Metro Area Details· San Francisco, www.money.com. downloaded June I 29,2001. I 3) Census 2000, www.census.gov, downloaded June 29, 2001. I 4) Doing Business: Fast Facts, www.sfchamber.com. downloaded June 29, 2001. I 5) Doing Business: San Francisco Economy, www.sfchamber.com. downloaded June 29, 2001.
I 6) Forbes 500, www.forbes.com. downloaded June 29, 2001.
I 7) Fortune 500, www.fortune.com. downloaded June 29,2001. I 8) United States Department ofLabor, "Metropolitan Area Employment and Unemployment: May I 2001." Bureau ofLabor Statistics News (June 27, 2001), www.bls.gov, downloaded June 29,2001. I I I I I I I I I I I I I I I
I San Francisco Broadband - July 200 L e 200 I CCMlISalestar, AIl rights reserved. I 8
FOR PUBLIC INSPECTION FCC4A000000368 ._------• CCMl/Salestar
I CO:rvrPETITIVE INSIGHTS I I I I I I I I I I I I I I I I I I I I I I I San Franci!co Broadband - July 2001. o 200 I ceMUSaIes.. All riJh~ rcoerved. I 9
FOR PUBLIC INSPECTION ._------FCC4A000000369 I I I • CCMIISaiestar I I COMPETITIVE INSIGHTS I) @Home (AT&T) I 450 Broadway Street Redwood City, CA 94063 I 650-556-5000 www.home.net I Carrier Type: ISP I I Carrier Summary: @Home is a provider of high-speed data and Internet services. The @Home service offers multimedia I content, client software, customer support, applications, and interactive services through the company's broadband service and narrowband portal. The primary components of@Home's network infrastructure I include a dual OC-48 IP Backbone, Super Nodes, Local Caching Servers, Cable Modems, and a 24n Network Operations Center. Service is delivered to the last mile through cable partnerships with 17 I companies, including AT&T, Cox, and Comcast. I I Coverage Summary: In the first quarter of2001, @Home had 3.2 million broadband subscribers and served 593 cable head I ends worldwide via its 15,000-mile private fiber-optic backbone. The company has over 10 million cable franchise homes under contract outside ofNorth America with localized versions ofservice in 15 I international markets_ I I Competitive Insigbts: @Home's @Work division has stopped offering DSL service, which was provided in conjunction with I NorthPoint Communications. @Home has also shut down its Work.com and iMALL services. @Home has terminated its relationship with Cablevision and is no longer reporting subscribers from that venture. I They have entered into an agreement with AT&T whereby AT&T agrees to maintain and update I @Home's backbone and provide $85 Million in capital to @Home. @Home would then be required to make annual payments to AT&T for a term of 18.5 years. Although AT&T has a 32% stake in @Home, I they act as independent entities with individual agendas. I @Home faces the disadvantage of having to enter into separate interconnection agreements with the various local cable franchises. Each cable company retains the control ofpricing for high speed Internet I access. @Home is reliant on 3'" parties to provide a connection to the customer. Both of these are disadvantages. I
I Recent Developments: I • June 19, 2001-@Home renegotiates optical fiber capacity lease with AT&T for $85 million June 19, 2oo1-@Home continues to hold discussions with Cox Communications and Comcast I Corporation regarding restructuring commercial relationships I June 11,2001 -@Home raises $100 million through sale. ofconvertible notes I San Fnncisco Broadband -July 2001. e 2001 CCM1ISaIcstar. AD riJhts reJCf\led I 10
FOR PUBLIC INSPECTION FCC4A000000360 ------I I I • CCMl/Salestar I 2) Adelphia Communications I I North Main St. I Coudersport, PA 16915 814-274-9830 I www.adelphia.com I Carrier Type: Cable I Carrier Summary: Adelphia is a cable company that offers Internet, long distance, paging, and security services. The I company provides additional services through 2 subsidiaries, Adelphia Business Solutions and Adelphia Media Services. Adelphia Business Solutions provides local voice, long distance, messaging, and high I speed data and Internet services. Adelphia Media Services was created to develop local, regional, and I national advertising and promotional opportunities via television commercial insertion on cable networks. I I Coverage Summary: Adelphia has more than 5.5 million residential customers nationwide and operates in 32 states. As of I March 31, 2001, the company had 9,095 local route miles, 500,389 fiber strand miles, and 7,879 long haul route miles. Currently, the comPanY is constructing a national fiber optic backbone that will serve I more than 200 markets and span more than 30,000 miles. I I Competitive Insigbts: Adelphia announced in December 2000 that it is effectively halting their expansion plans. Rather than I operating in a projected 175-200 markets by the end of 2001, it only expects to be in 80 markets. Currently they are operating in 75 markets. Instead they seem to be focusing on better integrating local, I long distance, data transmission, and Internet service for customers in targeted markets. Customers bave I the choice of purchasing services a la carte or in discounted bundled packages. Adelphia's main advantage over other Cable Broadband providers is that similar to the Regional Bell Operating I Companies, they can provide a myriad ofservices over their own facilities, reducing their dependence on other companies. I I Recent Developments: I • June 7, 200 I- Adelphia announces sale of$I billion ofSenior Notes January 3,2001- Adelphia closes swap ofcable systems with Comcast I I ,I I I San Frucisco Broadb..d- July 2001. e, 2001 CCMIlSaiatar. All riahts MlerVed. I II
FOR PUBLIC INSPECTION FCC4A000000361 • CCMIISalestar I I 3) AOL (DirecPC) AOLWay I Sterling, VA 20166 888-265-8006 I www.aol.com I Carrier Type: ISP I Carrier Summary: AOL, a subsidiary of AOL Time Warner, provides interactive services, Web brands, Internet I tecimologies, and electronic commerce services. Additionally, AOL Plus provides multimedia online I content to subscribers connecting to its service via OSL, cable, satellite, and wireless tecimologies. This expanded content includes streaming audio, full-motion video, games, and online catalogue shopping. I I Coverage Summary: AOL has doubled its subscription base over the last 2 Y, years to more than 30 million total subscribers I worldwide. The company now has over 6 million members outside ofthe U.S. In Latin America, the I company has more than 750,000 members and, in France, there are more than a million subscribers. Currently, AOL is available in 16 countries in 8 languages. AOL delivers service through AOLnet, its I TCPIIP network. I Competitive Insights: I AOL provides Hughes Electronics' OirecPC Internet services. OirecPC is a division of Hughes Electronics that deals specifically with satellite broadband customers. Until recently, OirecPC has I mainly deployed I-way fixed satellite systems. They are beginning to deploy 2-way systems and to that I end are partnering with larger, brand name ISPs to package services together. They are also in the process of integrating their satellite TV offering along with broadband Internet access. They are I beginning to sell dishes that can prOVide both satellite TV and fixed wireless Internet, they are not providing the service as a bundle. I Most ofOirecPC's focus seems to be on the residential customer but they also have some plans available I for SOHO and small businesses. Residential customers only have the capability to set up one computer per dish and to date they cannot support Macintosh platform customers. The main advantage ·Powered I by OirecPC" service has over other fixed wireless providers is that the service is transmitted via satellite rather than to a tower located within the market. This means that the service is available to customers I without further infrastructure development in any particular market. Potentially this service is available to anyone nationwide immediately. I
I Reeent Developments: I • June 25, 2001 - Worldwide AOL membership surpasses 30 million membership milestone I • May 22, 200 I- AOL to increase price ofits unlimited plan by $1.95 starting in July • May 18, 2001 - AOL to acquire InfoInterActive Inc. I
I San FI'Iftd5CO Bro.d.btad - lilly 2001. 02001 CCMIIS...... A1lriahu ...... I 12
FOR PUBLIC INSPECTION FCC4A000000362 _._------_. I I I • CCMl/Salestar I I 4) AT&T 32 Avenue ofthe Americas I New York, New York 10013 877-593-2087 I www.att.com I Carrier Type: ILEC I Carrier Summary: AT&T provides local and long distance services, data and IP services (including OSL, frame relay, I private line, ArM, and other broadband services), video, wireless, cable television, hosting, outsourcing, I and other consulting services. The company provides broadband services, such as OSL, via 2 business units, AT&T Business Services and AT&T Consumer Services. I I Coverage Summary: AT&T Business Services provides its services to over 5 million businesses via a coast-to-coast 10 GB I OC-192 fiber optic network. The unit has installed more than 16,500 route miles ofnext-generation I fiber. AT&T's business OSL service is available in more than 100 markets nationwide. Additionally, the unit provides Web Hosting services to more than 10,000 companies. I AT&T Consumer Services offers residential high-speed Internet access in 18 markets in 16 states. The unit expects to transition to an IP packet data architecture from circuit-switched technology by the end I of2003. I I Competitive Insights: On May 25, 2001 AT&T completed the $135 million acquisition NorthPoint Communications. The I acquisition includes all of NorthPoint's co-Iocations nationwide, certain network equipment, systems and support software and related assets, including two leased buildings in Emeryville, California. I AT&T has grown their high-speed Internet access (cable) at the rate of 3,800 customers per day, and I 3,000 customers each day for cable telephony at the end of 411\ quarter. I Recent Developments: I • March 22, 2001- AT&T announces acquisition ofcertain assets and technology components I from NorthPoint Communications January 31, 2001 - MerchantWired awards AT&T $100 million contract for broadband services I • • January 23,2001 - AT&T announces availability ofAT&T Ultravailable Network I I I
I 5l1li Francisco Broadband - July 2001. <02001 CCMlISaiestlr. AJI·j;Jhts reIeI"Yed • 13 FOR PUBLIC INSPECTION -_._------FCC4A000000363 I I I • CCMl/Salestar I I 5) DirecTV Broadband 10355 North De Anza Blvd. I Cupertino, CA 95014 I 408-863-6600 www.directvbroadband.net I Carrier Type: Facilities-based CLEC I Carrier Summary: I DirecTV Broadband, a subsidiary of Hughes Network Systems, provides broadband services to the I residential market nationwide.
I Coverage Summary: I DirecTV Broadband offers service in more than 150 markets and more than 1,500 cities. The company had more than 65,000 subscribers as ofMarch 31, 2000. DirecTV currently has partnerships with 4 last I mile carriers: Verizon, SBC, BellSouth, and Rhythms NetConnections. I Competitive Insigbts: I Hughes recently acquired Telocity Inc., which now sells OSL service under the brand ofDirecTV. The I acquisition has expanded Hughes' service offerings, which now include Satellite Television Service, OSL, and both I-way and 2-way fixed wireless. OirecTV is targeting the residential market I I Recent Developments: I • June 12, 200 I- Telocity changes to new service name, OirecTV OSL, and changes company name to OirecTV Broadband Inc. I April 3, 2001 - HUghes Electronics completes acquisition ofTelocity I I I I I I I I I
I S8rl'FnncilCO Broadband - July 2001 e 2001 CCMl/SaJesw. All riahts rcservod. I 14
FOR PUBLIC INSPECTION ------FCC4A000000364 • CCMIISalestar
I 6) EarthLink . 1375 Peachtree St., Level A I Atlanta, GA 30309 404-815-0770 I www.EarthLinkcom I Carrier Type: ISP
I Carrier Summary: I EarthLink is an ISP that offers dial-up Internet access, hosting, and e-commerce services in addition to broadband access services including DSL, cable, and fixed wireless. I I Coverage Summary: I EarthLink provides service to more than 4.8 million subscribers through over 7,500 POPs. In January 2001, EarthLink added 25 new business DSL markets to its roster, bringing the total markets served I nationwide to 39. At the end of 2000, EarthLink had 215,000 broadband subscribers in 90 markets (DSL in 90 markets and SDSL in 39 markets). I I Competitive Insights: EarthLink initially provided Internet service in conjunction with Sprint. This arrangement has undergone I some changes· in February of 2001. These changes did away with the exclusivity terms and stopped I requiring each company to co-brand their service. The changes have also allowed each company more freedom to work with third party providers. Each company now offers bundled service (both the access I and internet service) under their own brand name. To accomplish this goal, they provide each other wholesale service, which is then repackaged and sold under the other company's name. I One example of EarthLink working with a 3nI party access provider is their partnership with Hughes' I DirecPC with whom EarthLink recently began to offer 2-way fixed wireless broadband service nationwide. This partnership competes directly with Sprint's own Broadband Direct fixed wireless I division. This service also offers the ability to get Internet access as well as Satellite TV service through one device. Customers must still order and pay for each service separately. EarthLink's targeted areas of I revenue are: monthly fees for dial-up access, monthly fees for broadband access, Web Hosting revenues, and content, e-commerce and advertising revenues. I
I Recent Developments: I • June 19,2001- EarthLink announces new fixed-JP address DSL service for SOHO market • June 12,2001 - IT Managers rank EarthLink as the top ISP I April 25, 2001 - Cox Communications and EarthLink announce high-speed cable-based Internet I service trial • March 27, 2001 - Comcast Cable and EarthLink announce technical trial of high-speed cable I based Internet service I
I San Francisco Broadband - July 2001. C 200 I CCMlISoJ..w. All rishU...enoed. I IS
FOR PUBLIC INSPECTION ------FCC4A000000361i I I • CCMl/Salestar I 7) Pacific Bell I 268 Bush St., Suite 5000 I San Francisco, CA 94104 800-708-4638 I www.pacbell.com I Carrier Type: ILECIISP I Carrier Summary: Pacific Bell, a subsidiary of SBC Communications, provides telecommunications services including I local exchange, long distance, network access, data, and Internet services. Pacific Bell DSL is prOVided by SBC Advanced Data Solutions, a subsidiary ofSBC Communications. I
I Coverage Summary: I Pacific Bell offers DSL in California. SBC has launched an initiative, called Project Pronto, in order to deliver broadband access to all of its customers. Project Pronto will reach approximately 77 million I Americans by 2003. sac DSL is currently available to more than 20 million homes and businesses. I SBC had 954,000 subscribers (as of March 31,2001) that were served by 10,000 SONET rings and 5 million miles offiber strands. The company offers service in 20 ofthe top 50 markets in 24 states. I I Competitive Insights: Pacific Bell is part ofSBC Communications Inc. network. Data and broadband continue to be one ofthe I primary areas that SBC plan to expand. They have almost doubled the number ofcustomer locations that are DSL capable in the year 2000. (18 million locations in December 2000 compared to 10.2 million at I the beginning of 2000.) One goal for 2001 will be to add more remote terminals, which will enable I customers further from the Central Offices to get DSL services. The Pacific Bell region is projected to be a strong region for growth. I Entry into California's Long Distance market is one of SBC's top priorities. They are particularly attracted to the size ofthe market, which is the largest in any oftheir in-region states (-$15 billion). The I reason they are so keen to enter the market is, based on the success they have had in Texas, they expect I many customers will sign up for "all in one" packages. SBC is seeking to further expand revenues from the business market with increased Internet services and support. They are aggressively marketing the I Online Office package that includes DSL, Internet access email, and Web Hosting service for small businesses. I I Recent Developments: I June 18,2001 - Pacific Bell Internet services promotion offers special introductory price for new DSL subscribers I June 6, 2001 - SSC introduces self-install home and small office networking for DSL customers I I
Sir! Francisco Broadband _ July 2001. I (l2001CCMIISalesw. AD-riahts l'CSCI"Ycd. I 16
FOR PUBLIC INSPECTION FCC4A000000366 ------~ • CCMl/Salestar
8) Prodigy 6500 River Place Blvd., Building III Austin, TX 78730 512-527-1500 I www.prodigy.com Carrier Type: ISP I I Carrier Summary: Prodi,P,' Conununications is the nation's the largest residential DSL Internet Service Provider as well as I the 3 largest ISP overall. Prodigy provides Internet access and other Internet-based services, including I dial-up and DSL services, to residential customers. ' I Coverage Summary: As of April 26, 2001, Prodigy served more than 3.1 million customers, of which 700,000 were DSL I customers, via a nationwide network covering 850 locations in all 50 states. The company offers DSL I access in 48 states. This network, with 2,300 local access sites nationwide, allows Prodigy to reach approximately 90% ofthe u.s. population. I Competitive Insights: I Prodigy has entered into strategic alliance with SBC communications until 2009. SBC is responsible for networking, customer care and acquisition costs. Prodigy is jointly marketing services to all customers I throughout SBC's home region. They have agreements with retail outlets such as CompUSA, Best Buy I and Office Depot. Also with OEMs such as Hewlett Packard, Sony, Toshiba, US Robotics and Microsoft corporation. These joint marketing agreements have created exceptionally strong brand I awareness for Prodigy, and gives them a financial advantage over smaller providers in promoting their services. I Prodigy is also customizing some of their services in order to be market leaders to specific segments of I the community. They currently offer service tailored to DSL customers with increased bandwidth. These services include a homepage specifically for DSL customers. This portal provides information I and advice on how to fully utilize the greater potential uses that are possible with increased bandwidth. I They also have expanded media offerings that include radio and online television channels and will move towards "video on demand" in the future. They are also aggressively targeting the Spanish I speaking market. They provide service in conjunction with TelMex to customers in Mexico. Prodigy also has a bilingual service called Prodigy en Espanol which is tailored to the US Spanish speaking I market
I Recent Developments: I Februmy 28,2001 - SBC Telecom executive named CEO and President ofProdigy I • Janumy 19, 2001 - Prodigy improves cash position and financial stability with strategic , marketing agreement with SBC Communications Janumy J7,2001 - Prodigy and GiantBear partner to develop and launch wireless Web portal I
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FOR PUBLIC INSPECTION FCC4A000000367 ------~- • CCMl/Salestar I 9) RCN I 105 Carnegie Center I Princeton, NJ 08540 800-746-4726 I www.rcn.com Carrier Type: Facilities-based CLEC I I Carrier Summary: RCN is a facilities-based provider of bundled telephone, cable television, and high-speed Internet I services to residential customers. The company offers service via its broadband fiber optic platform. I Coverage Summary: I RCN has more than 1 million customer connections and provides service in the Chicago, Boston, New I York, Philadelphia, San Francisco, and Washington OC markets. RCN's network utilizes SONET ring backbone architecture and localized nodes, serving only 150 homes per node. Each ring is build to I ensure RCN's fiber optics travel to within 900 feet ofsubscribers. The company's local fiber network has approximately 85% ofexcess capacity available for future services. It is RCN's strategy to target all I high-density markets nationwide that meet its criteria of150 homes per mile. Currently, the company's target markets represent 44% ofthe total u.s. telecom market in only 6% ofits geography. I
I Competitive Insights: I RCN announced a new multi-million dollar marketing and advertising campaign designed to speak dirCctIy to consumers who are in RCN service areas in order to increase service penetrations in existing I RCN markets. The campaign will focus on the advantages of RCN's bundled service, known as ResiLink(sm). It was created for RCN by its new advertising agency of record, the Chicago office of I Laughlin/Constable. I RCN has been working to rectify their DSL service that was disrupted when NorthPoint assets were sold to AT&T. To date they have transferred approximate 400 customers to Covad facilities. All customers I will receive credit on bills for service downtime. I Recent Developments: I • June II, 2001 - RCN launches new multi-million dollar marketing campaign to increase I customer penetration in RCN markets • April 17, 200 I- RCN launches Resilink bundled phone, cable, and high-speed Internet services I to residents of West Roxbury and Roslindale, Massachusetts I March 19,2001 • RCN launches Resilink bundled phone, cable, and high-speed Internet services to residents ofRedwood City, Califomia I I I I San FrlnCisco Broadband - July 2001. e 20CH CCMllSaiatar. All riFts reserved. I 18
FOR PUBLIC INSPECTION ------FCC4A00000036a I I I • CCMl/Salestar I I 10) Speakeasy.net 2222 2nd Ave. I Seattle, WA 98121 206-728-9770 I www.speakeasy.net I Carrier Type: ISP I Carrier Summary: Speakeasy is a national broadband service provider offering dial-up service, DSL, e-commerce I solutions, and Web Hosting services. I I Coverage Summary: Speakeasy.net is an ISP that initially began as a CybeICafe in the Seattle area. They have expanded into I a nationallSP that uses Covad to provide DSL service. They offer DSL in 50 markets and have dial-up service nationwide. The company has gained over 10,000 active DSL circuits since the beginning of I 2001. I I Competitive Insights: Speakeasy has several packages available. In addition to standard DSL offerings they also have 3 I additional packages that are configured to appeal to specific user groups (i.e. Internet Garners, Online Traders, and Systems Administrators). I
I Recent Developments: I June 14, 2001 - Speakeasy.net and Emusic.com partner to provide broadband digital music service I • April 4, 2001 - Speakeasy.net offers reinstallation cost reduction for business and residential I users affected by NorthPoint closure I I I I I I I I
I San Fnncisco Broedbn- July 2001. C 2001 CCMIIS...... ,. All riah- rcseived. I 19
FOR PUBLIC INSPECTION ------FCC4A000000369 I I I • CCMl/Salestar I I I I COMPETITIVE PRODUCT I I MATRIX I I I I I I I I I I I I I I. I I I I I I I
San Francisco BroMband - lulv 2001. I CO 200 I CCMIIS.lestar All nihu reserved. 20 I
FOR PUBLIC INSPECTION FCC4A000000370 _._------I I I • CCMl/Salestar I I DSL COMPETITIVE PRODUCT MATRIX - (AT&T DSL, DirecTV. EarthLink) DSL Providers AT&T Sinale U.., DSL Dlrec:TV EarthLink DSL I "IlIdUilt Broadband Technolaav IDSL-ADSL ADSL ADSL I IDSL- 144Kbplil44Kbps Speed 144 Kbps ~ 1.5 Mbpl' Up 10 284 (DownJUp,lre,mj ADSL - 808='2::: Up to 1.5 Mbps I Up to 128 Kbp, I ADSL - 1.5M /384 Kbp. ADSL pllns - 1 box Included E-Mail IDSL plan - 1 box Included and option to 5 8 I get up to 30 more. IPAddrns 1 (llyr1Imic) 1 (StatiC) 1 (Dynlmic) t Shared Web Hosting Not offered Includod Included Includod I Oata StOtll"le Not Included uo to 400 Me availabl_ 10 MB for email and 10 MB for 08" 10 MB Domain Nlme Network Solutions: $70 firat 2 Not offered No (Must go through 3rd Party) yell'llS35 per y..r thef'eatler RIgiltnltion I Register.com S80 for 3 yeal'l Primorv DNS Not offered Includod NOloffered SecondarY ONS , Not offered Included Not olIerod I Local Voice SlfVice Not Included Cavallabte.t In additional Nollnducted Included co,l) Not Included Long Di,tance Voice Not Inctudecl (Ivlllible .t an addtttonal I Not Included Service l"e1uded co,l) Notlnciudld VoiceJOatl Discount N/A N/A NJA I BackupfRemole 0.1 (a~on.1 Not offered 60 minutes free per month (S.10 per 20 hOUri per month Account minute after} hoUl'l COltS 1 each I Online Account Manaoement VI' VI' VI' I Content Not offered News server Access News Server. Magazlne Priol $48.9~ for 608Kpbs/128Kpb. M.onthly Rec:u~g I S78.95 for 1.5Mbpsl384Kbps $49.95 549.95 Chlrge S89.95 for 144KboIi144Kbo, Frae jf customer .igns up for 1 Ve.r i~~J1Id); Vlri~ Installation Charge SO (W 'oil (with I contract, otherwls. $300 SO 3rd Pa instillation $100 for modem; $450 for router I Customer can 1150 rent the modem for Equipment Charge $10 a month or the router for $40 a SO SO month I lSP Charge SO SO SO Ccmtnlet 1 Year None 12 Months I Earty Terminatton Fee S3oo.00 None S1<9.95 Promollon.1: First 2 months F.... and No acthlatlon Charge (Expires 8I3OJ01) I Waive $99.00 activation fee Promotions None Promotion '2: Order through website (OIl..1",,1.., 8130101) and get 3 months at $19.95 will no I eetivation (No expmon specified) Additional Pricing Must pi)' $24.95 Shipping for Set up None None I Informltlon olokaol 8IMCI I Equlpmen1lnltan.r AT&T Soli Self, 3n:l PIr1y Order Intervat 15- 30 DIY' 21 - 45 Doy, 15·30 DIy, I Technical SuppOr1 Telephonl (24x7) Telephone, E-Mail Tllephone, E-Mail Integrated Billing VII No No I SOluChon... Telephone VII Ve, VI' Online VII VI' VI' • OEM No V•• No I Re18i1 No YI, VIS
I San Francisco Broadband -July 2001. o 200J CCMIlSaJcstar. AJI'riahls fClIIcrvcd. I 21
FOR PUBLIC INSPECTION FCC4A000000371 i I t • CCMl/Salestar I I DSL COMPETITIVE PRODUCT MATRIX - (EarthLink, Pac Bell, Prodigy) DSL Provide,. EarthLlnk Static: IP DSL Pac:lfic: eail ea.ic: DSL Prodigy DSL-8F f 'P.l'CIjjiiCl Brc.and Technoloav ADSL ADSL ADSL Speed I 1« KIlp. - 1.5 Mbp.' up to 128 KIlps 1.5M8I1281< 1.5 MBI128 KIlps (DownIU.....m) I E·Maii 6 1 11 IPAddress 1 (Static) 1 (dyn.mlc) 1 (dynamic) No (package, rang. from se...95 to Shared Web HDsting I Not offered SM8.9S. All pickage. inclUde monthly Not offered Included recurring charge for the OSL service) I Oata Storaae 10 MB 3MB 15 MB Network Solutions: Domain Name $70 first 2 years, 535 per year thereafter Not offered Included I Regialrabcn Reglster.com: $60 for 3 ve.,. . I Fl'rfmary DNS Not offtrtd Not orr.red Included Secondary DNS Notoffmet Not offered Included lOCllI Voice Service (8\lall'~' I Not lncluded Not Induded Itan additioNiI Not Includad Includod co.t long Distance Voice Not Included Not Indudld Not Included I ServIce Inctuded VoieeJOat8 Oilcount NJA NJA NIA Backup/RemO'll Di.l 20 hours per month (additional hours I Included Includod Account co.U1 loch) Onlin. Account v•• No No l Manaoement Contenl News Server, Magazine Newsgroups Newsgroups, Chat I Prico $39.95 with th. sec valu. reward Mflnthly Recurring I '&1.95 promotion and 1·yearcontr8ct $49.95 Charge $49.95 with monllllY controel SO (if self inatelled), V.ries (with 3rc1 Free letf-initallltion or 1200.00 Fret self inatall.don Inst8l1atiOn Charge I P.rty In.tallation' prof.ssionalln,mllilUan .200.00 ~'ional in,tll.tiDn Modem can be purchned for 199.00. Equipmen1 Charge SO '99.00 t Curren11'1Mr'1"1t1tion offel'l • free modem ISP Charge '0 '0 SO I Con1rlet 12 Months 0-1 year cannel 1 year Early Termination Fee "49.95 $200.00 $225.00 sec Value Rewlrd offers free Warve $99.00 activation fee (Offer equipment end service connection or a Promotions None • ."pl,..8130101) choice of girts wi'" value from $25(). I '500. E""j,..09l15101 S50.00 servtca proviSioning Charg., I Addition" Pricing Non. This ia waived with the Qlrrenl None In'onna1ion promotion for the Buic aervice. I SaMco Equipment Installer Self. 3rd P.rty PacifIC Bell Pacific Bell 10 Bulinesa Days self inslan I Order Imervll 15·30 Diy. 7-10D.yo 4! 0• ..,. bmf...ional I Technica' Support T""phon•• E·M." Tolophon. (24x7) Talephon. (24x7) Integrated SIHIng No Ves No I Solo. Ch.nn.' T.1e onl Ve. Vu v.. , Online VI. v.. N. OEM No No No Re1Iil Ve. No No r . I Sill ,Francisco BroadblDd - July 2001 Cl200) CCMIISalatar, All rights reserved, I 22
FOR PUBLIC INSPECTION FCC4A000000372 I • CCMl/Salestar I DSL COMPETITIVE PRODUCT MATRIX - (Sptakeasy) I Spaakeaay Ea..ntial Edge DSL Provide,. Speakeaay Net Expert Baale ~ BaalelPlua and Plus Speake.sy Net Re.ch .. '~rWuet . I Broedband Tedmoloav RADSl RADSl 10Sl Speed 608 Kbpll128 Kbp. lDown/Uolnlm\ 1.5 Mbps/384 Kbp. 144 Kbps/l44 Kbpi t E-Mail 2 2 2 1 (DynamiC) for essential Edge BIllie 1 (Oynamk:) for Net Expert Basic I IP Address 1 {Statlc)'a, Essontial Edai Plul 1 !Sloticl'fll( Not exDert Plul 1 No, but '14.95 pit' month for basic: No, but $14.95" per month for basic No, but $14.95 per month for basic domain hosting with S15.oo setup fee; domain hosting with $15,00 setup fee; Shared Wob Hosting domain hosting with $15.00 ntup I $9.95 per month for maiJ..only hosting 59.95 per month fllf mai~only ha.ting 1ft; $9.95 per month for mail-only Inducted (customer provideS the Web .erver) with (customer provides the web server) hosting (cultomer provide, the , 510.00 .etuo flO _ 510.00 Htuo ,.. Wob so",arl with 510.00 .otup 'eo None for Enentlal Edge Belie plan None fo, Not Export Buic plan Data Storage 10MB fo, E..ontiol Edo.-Plul don 10 MB fa, Not-e;;aort Plu. olon 10MB Domain Name I Indueled Included Included Rogistration Included with Web Hosting pickage Inclu
San FrancilCO BroNb.lnd - July 2001. r 02001 CCM1IS.II...... All riiIIls.....-ved. I 24
FOR PUBLIC INSPECTION ------FCC4A000000374 I I I • CCMl/Salestar I I CABLE MODEM COMPETITIVE PRODUCT MATRIX - (Adepbia, AT&T, RCN) Cable-Modem AdelDhla Power Link AT&T@Home RCN Cable Modem I ·Product Broadband Technolonv Cable Modem Cable Modem C.bl" Modem I Speed 3.0 Mbpsl128 Kbp. IDownloeciiu.loed\ 2.8 Mbf's/128 Kbp. 27 Mbpsll0 Mbps E-Mail 4 3 Hom. s' n-up} or 7 AT&T lian uo\ 4 I IPAddrn. 1 ernie 1 (OYnlm!c) 1iii\n1amic Shared Web Hosting $25.00 per montl\ _ a $80.00 Included Not offered I Included Instlllalion-Chara~ for Wab Hostinn OMI StoraftA 5MB 10 MB Der e-mail aec:ount 10MB lor rsona' home e Domain Nlml No. however tech aupport can facilitate Not offered Hoi off.red I Re"istration initial contact with 3rd Dartv orovider Bask: Local: $10.00, unlimited local calNn; Not Included, available at extra LOClI Voice service Not AVlilabl. lODlIOnly: $19,98, unlimited local calling, cosl depending on which calling I Included CaUer 10 Call W.tino. and 3-W~ C"lin" 'eeturos the cultomer WlntI No (available at In adellional cost) Long Distance Service $.07 interstlt. and in-state with 180 Minute Block ofT...: $30,95 I Not Available Included Adelphill Advantage packlge 300 Minute Block of Time: $38.98 $.08 interstate and in-Itlt, otherwise I Add $5,00 monthly servtc:a charge per line VoicalDIt8 Dl.count N1A for addition.llin.s on the ..m~·;':;;-::';'~ Yes i Remot8/BKkup cial Not offered Not offered Account Not offered online Account Ye. I Manl"emenl VIS" No Co<1tent Newsorouos Excite Homo NIWICIrOUDI I Prioe @Home sign up: ua,95 $39,95 for Adalptlia DIble cu.lomars If UHr,.ntI modem: and $-48.85 for r1On-elbie customers;' AT&T sign up: $45,95 I Monthly Recurring $79.95 for Adelphia cu.lomers I. OHome sign up plyingannUiIIy: $36.82 $39,95 Charge combined with "gilll Clbt, in Adelphia· If UHf' supplies modem: I Advantage paage AT&T .Ign up: $35,95 . CHome sian un b.vino .nnueltv: $27.45 I Combin.tion of Ielf Ind protesslOMl Insllillation: Frn $49,95 $99 Inlt8llation Charge AT&T sign up: inatell i. $49,95 I IlliHoma .ion 00: In.telil. $149,98 Modem is included tie p.n. $0 SO SUppltes equipment with EqUipment Charg. or customer own Ethernet and NIC card..... extra I ISP Ch""'" $0 $0 $0 No connet but more favorable montt'lly Contract None Montn-to-monlh or , Year I service (HI with annuli! ...,...... u $99.85 for customers who sign up Early Termination Fe. NfA N1A for 1Year contract I Free basic instillation (Sllf-instiltiation 1free month of Hrvtee fOr cUltomer, except for IIrviCe connection) InstlHltion charge is cumtnlty who refer .nother paying customer Promotions @Home sign up: 1m first month service being waived for cultonr, who I FFee instailition AT&TOHomesign up: $19.95 for ltt 3 sign up for. 1 VNr contract. $5.00 off of monthly service f•• months of servicl AddItion. Pl1ctng Etl\emet and NIC card. typically I 'No $24,95 for Elhemetadepter, ~ raquirad InfGnnltion ~~. in ori..from $4510 $110 I 8oMoa EDUiDinent Inslilier Ada hla AT&T Broadband SeW RCN Order Inlervll 3 laY. 3 to 15 Oavs 7 ~ 10 BUIInISI o.vs I TedJniC81 S 24.7 Te'l!tI hone EmI;1 24 x 7TeIe""ona Cha' E-mail 2..7Telephon. Cab/tllntamet .lI\Ii... togetlter Integrated BiHng" No No, voice and data HNices COm8 I 'Oflll di.tan..i. bHIed """ratel. on s~al'lte bills Solaa CIlannal Teleohone Yes Ves Yo. I Online Yes Yes Ye. OEM No No No I Rltall Cable Modem 0 Cabl, Modem On No
I San .Fr8llCisco 8roacIband - July 2001 10 200) CCMlISalestu. All riJhts ~cd. I 2S
FOR PUBLIC INSPECTION FCC4A00000037& t I I • CCMl/Salestar I I FIXED WIRELESS COMPETITIVE PRODUCT MATRIX - (AOL, EarthLink) AOL Plus Powered by DlrecPC (PC'S Fixed Wlrele.. Providers EarthLink Powered by DlrecPC (PC', I Only) Only) Product I Tochnology One Way Fixed Wlretess Fixed Wireteaa Speed (Ups_mlDownstroem) Up to 400 Kbps I Dial Up Up to 400 Kbpl I Up to 128 Kbps I ~.95 E-Mail Account. 7 6 (Additional mailbOxes I'" per month per .".ilbox I IP Addresses 1 (Dynamic) 1 (Dynemic) Shered Web HOlting Included Not offered Up 10 6 web pegel I oltl StOr8ge 20 MB per mailbox (140 totll) 10 MB for Mailboxe" 6MB per web plge 1 Year $13.95Jyr 2 Vears $13.45/yr t 3 Veers $12.115/yr Domain Name Regisntion 5V••rsS11.951yr Not ort'ered BVeers $10.451\'r I 10 V.ars $8.SJ5Iyr PrimlllY DNS Not offered Not offered I SecondelY ONS Not otIered Not offered local Voice Slrvk:e Included Not Availeble Not Avalleble I Long Di.tlnea service Included Not Avaitable No1Avallabte VoiceIDete Discount N/A NlA I Online Accoum Mlinagil!ment Included Included Newsgroup Access. D1recOuo Satetli1e TV (far Newlgroup ~II, o_Cuo Satellite TV (for Contlnt I addl1lonal cost) e_lcosll I Monthly Ream1ng Charge $19.95 $611.II5 - Free with I'nlmotion $250 ($325 lor DIrecDuo Service) Installation Charge v.ri•• depending on In.lliler I Equipment Ch_ $149 ($199 'or D;recDuo) $649 ($67g for DIrecDuo service) S23.QO per month $0 ISP Che'Ve $19.l15 Wyou _eyfor 1 ynr($23Q.40) • Contrad No Term 1 Velf r Early TermiMtion Fe. N/A $399 1 Free Month servict I Promotions Free Instllliation No (Offer exp;ru 7125101) r PC pletform Only 1 Computer Only 20 Hours free Dial up Ieee.. per month Addltlonll Plic:ing Elements Must be enrolled in AOL unlimited plll'l PC Pletform Only I Requires dill up Ieee., ,nd analOg modem in 1 Compumr Only addition to Satellite Dish .nd Modem I Servlel Equlpmll'lt Inltaler Hug... DtrecPC Hughes OirecPC I Order Interval 15-30Doys 10- 20 Doys TeeMical Support 24x7 (Telephone, Em'll) 24x7 (Telephone, Em.i1) I Inte;reled Billing No No Service Level AgreemWits No No I ..luChMneI Talephone Ves V,s I OnUM Ves Vel OEM No No I Retail Ves No I
Sa Franc:i.co Broadband - July 2001. I e 2001 CCMIIS.IesIlf. All rishts...... t. I 26
FOR PUBLIC INSPECTION --_._------FCC4ADOOD00376