NORWALK, Conn.--(BUSINESS WIRE)--March 21, 2000--mPhase Technologies Inc. (OTC BB:XDSL), the leading designer of broadcast digital television and high-speed data solutions for the telecommunications industry, and AlphaStar International, Inc. (http://www.mediacrossing.com/), one of four original Direct-To-Home (DTH) satellite broadcasting companies including Direct TV, Echostar, Primestar and AlphaStar, today announced the creation of mPhase Television, a joint venture to create a global broadband television distribution network. The network provides telcos worldwide with interactive television and video content via a hybrid model of satellites and standard copper telephone wire. The network is the first pioneering effort of its kind to create a new distribution medium to allow phone companies to compete with cable and satellite TV networks. The first client for this unique service will be Hart Telephone, a local exchange carrier located in Hartwell, Georgia. Several other installations are planned.
``By combining AlphaStar's satellite global coverage with mPhase's last mile solutions, mPhase Television will usher in a new era of television and entertainment distribution history. Now 96 percent of Americans have the potential to get both local, global TV and radio programming via their existing phone connection. The potential to penetrate the global market is equally impressive,'' said Mahmoud Wahba, president of AlphaStar International.
The combination of mPhase TRAVERSER and satellite technology is leading the way for telcos worldwide to enter the field of television and entertainment. These new services will be in addition to providing high quality phone services and high-speed Internet access at the same time.
``The market for broadband services will continue to grow significantly over the next several years,'' said Michelle Abraham, senior analyst at Cahners In-Stat Group. ``Companies that can package value-added services such as interactive content and e-commerce will be well-positioned to seize a primary foothold in this burgeoning market.''
Utilizing mPhase's unique TRAVERSER Digital Video and Data Delivery System (DSL-over-copper) and Alpha Star's satellite technologies, telecommunications providers can receive and redistribute hundreds of television channels and other digital programming from the AlphaStar facility. Using a small satellite dish installed at the central office, telcos have the ability to downlink signals using small dish equipment; providing significant cost and space savings. Telcos may then redistribute the programming to subscribers through the mPhase TRAVERSER using standard copper telephone wire.
Subscribers of the network will be able to download a movie, video-game or song, audio book or music video, as well as receive digital television programs on a monthly subscription basis or receive video-on-demand and pay-per-view options directly from the local phone company. The satellite will continuously update and refresh the local telco as well as provide a live 24/7 continuous feed of TV and radio channels.
mPhase Television empowers telcos to offer subscribers all of the advantages of digital satellite television, such as superior picture quality including MPEG-2, laser quality sound and a vast channel selection, without the expense and inconvenience of installing a satellite dish at the customer's home. Because the content is delivered from the telco central office to consumer premises over the existing twisted pair copper telephone wire, no additional infrastructure upgrade expense is necessary.
The mPhase Television distribution model combines global content via satellite and local content via the phone company's local access. mPhase Television will be able to provide subscribers with a wide variety of local content including television, radio, paging and community access programming. Direct-To-Home satellite providers can only offer limited access to local programming in select markets. The satellite coverage enables the creation of a global network of many different phone companies around the world. Studies show that cable TV penetrates only 64 percent of American households while phone service has a penetration rate of over 96 percent. Because mPhase Television uses existing telephone wire, it has the ability to effectively target this larger market.
Hart Telephone, a local exchange carrier located in Hartwell, Georgia is a current test site for the mPhase DSL solution transmitting high-speed Internet access, traditional telephone service and digital television over existing copper telephone lines. Hart is scheduled to provide national and international content to its subscribers using mPhase Television in May 2000.
``The ability to partner with a pioneer in the delivery of satellite broadcasting and Internet streaming digital content puts mPhase in a position to offer a complete solution to telcos nationwide,'' said Ronald A. Durando, president and CEO of mPhase Technologies. ``Using mPhase Television broadcasts, telcos can provide their own content to their customers economically, immediately and conveniently.''
The joint venture will be located at the AlphaStar facilities in Oxford, Connecticut, (see a photo gallery and interactive pictures of the teleport at www.mediacrossing.com) and allow mPhase Television to broadcast MPEG-2 signals over satellite to competitive local exchange carriers and/or telco head-ends. The teleport is one of about a dozen facilities worldwide capable of uplinking and downlinking satellite feeds of hundreds of channels worldwide between 1 degree west and 137 degrees west using Ku and C bands. The AlphaStar teleport will coordinate the download and aggregation of MPEG-2 signals from various satellites and deliver this digital television programming (including video-on-demand, pay-per-view and special events) to local exchange carriers and major telcos worldwide. The facility is a fully FCC licensed integrated digital complex capable of simultaneously broadcasting and streaming feeds from Ku, Ka, C bands, Vsat and wireless networks.
About AlphaStar International
AlphaStar (Greenwich, Conn.) is one of the original four DTH (Direct-To-Home) satellite broadcasting companies, including DirecTV, Echo star, and Primestar. The company now specializes in Satellite TV broadcasting and Internet streaming technologies via satellite and fiber backbone. AlphaStar's teleport, located in Oxford, Connecticut, on twelve campus-like acres is one of about a dozen KU-band facilities in the world of the same video specialization, capacity and scalability. It allows reception of multimedia and broadband content via a small satellite dish. The teleport cannot be replicated without spending tens of millions of dollars and considerable time to obtain zoning permits and construction, creating a barrier to entry at this time. Built on a mountaintop as part of President Reagan's ``Star Wars'' program, it was intended originally to protect the US by tracking the former Soviet Union's satellites. As a result the teleport is geographically located where it can downlink and uplink from most countries around the globe. The teleport was converted to a satellite broadcasting and Internet streaming media facility capable of delivering thousands of TV channels and Radio stations continuously, live 24/7 and on demand.
About mPhase Technologies, Inc.
mPhase Technologies, Inc. (OTC BB: XDSL), a leader in the emerging market for high-speed Internet access, develops solutions for transmitting high-speed Internet access, traditional telephone service and digital television over existing copper telephone lines. The company's flagship product, the TRAVERSER, uses Rate Adaptive Digital Subscriber Line (RADSL) technology to enable telephone companies to simultaneously transmit high-speed Internet access, up to 400 channels of digital television programming and traditional voice services. More information is available at www.mPhaseTech.com or www.mPhaseTV.net , or by calling 1.877.MPHASETV. Investors may obtain additional investor information and subscribe to investor services by referring to the Investor Information section on the mPhase website or by calling the mPhase Investor Hotline at 1.877.411.XDSL.
Any statements contained in this press release that do not describe historical facts may constitute forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties.
The factors that could cause actual future results to differ materially from current expectations include the following: fluctuations in customer demand; the Company's ability to manage its growth; the risk of new product introductions and customer acceptance of new products; the rapid technological change which characterizes the Company's markets; the risks associated with competition; the risks associated with international sales as the Company expands its markets; and the ability of the Company to compete successfully in the future, as well as other risks identified in the Company's Securities and Exchange Commission filings, including but not limited to those appearing under the caption ``Risk Factors'' in the Company's Prospectus.
Contact:
Investor Inquiries:
Sue Cifelli
mPhase Technologies, Inc.
203-831-2225
suecifelli@mphasetech.com
or
Media Inquiries:
Tim King
Schwartz Communications, Inc.
781-684-0770
mphase@schwartz-pr.com
or
AlphaStar Inquiries
Mahmoud Wahba
AlphaStar Int. Inc.
203-531-5555
maw@mediacrossing.com