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test of Bell Atlanta Announcement
From: David Farber <farber () central cis upenn edu>
Date: Thu, 19 May 1994 09:39:14 -0500
FOR IMMEDIATE RELEASE CONTACT: 703/974-1720(THURSDAY 5/19 ONLY) MAY 19, 1994 *************************************************************************** * Bell Atlantic to Build Interactive Digital Network; * * Customers to Receive Video Entertainment * * and Information Services * *************************************************************************** Washington, D.C. -- Bell Atlantic (NYSE: BEL) today launched a program to begin building its full service network, the Bell Atlantic Network (BAnet), in six major markets within 18 months and in 20 mid-Atlantic markets within five years. The company announced it has selected suppliers for the major components of the system, and Bell Atlantic is taking other steps to create this powerful, open and flexible network. As a result, Bell Atlantic customers will be the first in the nation to receive video services provided by their local exchange carrier over its own network. "We will start by offering video programming, including entertainment, news and other information services over the new system," said Jim Cullen, Bell Atlantic president. "The system will be capable of two-way service, and it will carry both traditional analog and digital information as well as the new interactive services. We plan to make interactive multimedia television (IMTV) available starting 1995. While we have conducted trials, this will be the first commercial IMTV anywhere." Bell Atlantic alone among the regional Bell companies has the authority to offer its customers video services, having won a court ruling in August 1993 to provide video programming in its own service area. Stu Johnson, Bell Atlantic group president -- large business and information services, said, "Bell Atlantic video programming will be better than cable TV, with more choices, higher quality and packages of programming tailor-made for individual customers. Finally, consumers will have a real choice for home video services without being held hostage by a single cable TV provider, trekking to the video store or settling for the limited broadcast fare." Bell Atlantic today announced four major steps in launching BAnet: * Bell Atlantic has selected AT&T Network Systems (NYSE:T) as prime contractor for the project. General Instrument (NYSE:GIC) and BroadBand Technologies (NASDAQ:BBTK) will also help build BAnet. This construction program is part of Bell Atlantic's $11 billion capital program for the next five years. * The company also announced that BAnet will be deployed in six major Bell Atlantic markets starting in 1995. Those markets are northern New Jersey, the Philadelphia, Pittsburgh, Baltimore, Washington, D.C. metropolitan areas, and Virginia Beach, Va. Bell Atlantic plans to offer the service in the rest of its 20 largest markets by 1998. * Bell Atlantic will file soon the documents required under section 214 of the FCC code to be permitted to build video dialtone networks of this kind. * Bell Atlantic is supporting a multi-industry coalition, the "Open Set-top" Executive Interest Group, representing major technology and service providers. The group will work to create standards so customers can use one set-top terminal to receive broad band services from a variety of video information providers. The industry group will be formed under the Corporation for Open Systems International which will coordinate this effort. Bell Atlantic's BAnet will have tremendous capacity with the ability to carry hundreds of video channels. Under FCC rules, BAnet is a video dialtone network and open to all who wish to offer their services on it. The system will carry information and entertainment from Bell Atlantic as well as services offered by others. "Our interactive digital system is flexible in three important ways," Jim Cullen said. "First, customers can choose the programmers, providers and specific services they want; second, BAnet includes a variety of technologies, and third, our 'just-in-time' deployment plan means we can deploy BAnet where and when it makes good business sense for us and our customers." Bell Atlantic will rely on a variety of technologies in its full service network. The company will use a switched digital hybrid fiber-coaxial platform, a switched digital fiber-to-the-curb platform or an ADSL (asymmetric digital subscriber line) approach which employs the copper network already in place. The companies who will help build the network under this strategic deployment plan responded to a Bell Atlantic request for quotation issued Dec. 8, 1993. AT&T Network Systems will be the systems integrator and prime network contractor for the project. In addition to assuring that all aspects of the network -- from central office to home terminal -- work together, AT&T will be the major network equipment supplier. Richard A. McGinn, president and chief operating officer of AT&T Network Systems, said, "Our goal as prime network contractor is to help Bell Atlantic rapidly offer consumers connections to BAnet, an open and flexible network that will provide a whole new world of interactive multimedia services." General Instrument will provide the next generation analog and digital addressable set-top terminals capable of supporting interactive multimedia. GI will also provide end-to-end access control, encryption and digital compression technologies. In support of AT&T and as a subcontractor, GI will provide video distribution equipment. BroadBand Technologies, a subcontractor, will provide network elements to support switched digital fiber-to-the-curb architecture. "We are delighted that Bell Atlantic has once again selected our system as an important element in their broadband deployment," said Salim A.L. Bhatia. president and CEO of Broadband. "Switched, digital video over fiber-to-the-curb will enable Bell Atlantic to offer unique and truly interactive services to its customers." "We will begin building our new network predominately using the AT&T/GI approach," said Larry Babbio, Bell Atlantic executive vice president and chief operating officer. "However, we will build those BBT systems that are already planned in New Jersey, and we expect other deployments using BBT's switched digital fiber-to-the-curb systems as the multimedia market develops." "Under our just-in-time deployment strategy, we will put the essential elements of the full service network in place, and we will add the final link from our network to the home -- cabling and electronics to actually deliver service to an individual customer -- only when the customer wants it," Babbio said. "Furthermore, the flexibility of this network allows us to offer IMTV services as soon as markets are ready for them." Babbio said ultimately today's telephone services will be fully integrated with the new system. "Our customers will have the same reliable, high quality, low cost basic telephone service they've always had, but they also will have the opportunity to use advanced IMTV services," Babbio added. The Bell Atlantic strategic deployment plan builds on earlier company announcements of its intention to make broadband interactive multimedia services available to up to 8.5 million homes in the company's mid-Atlantic region by the end of the year 2000. Bell Atlantic is the established leader in developing video services for telephone systems. The company has unique experience as a result of its technical trials, its wide deployment of fiber optic systems and its deployment of advanced telephone switching and other systems. The company is building a digital production center in the Washington area at Reston, Va. Bell Atlantic Corporation, based in Philadelphia, is the parent of companies that provide a full array of local exchange telecommunications services in Delaware, Maryland, Pennsylvania, New Jersey, Virginia, West Virginia and Washington, D.C. Bell Atlantic also is the parent of one of the nation's largest cellular carriers and has an ownership position in cellular properties internationally. In addition, Bell Atlantic owns an interest in Telecom Corporation of New Zealand and is the parent of companies that provide financial services in the U.S. and business systems services for customer-based information technology throughout the U.S. and internationally. ##### FOR FURTHER INFORMATION CONTACT: Eric Rabe 703/974-3036 or 215/963-6531 <rabe () ba com> Shannon Fioravanti 703/974-5455 Joan Rasmussen 703/974-8815 <rasmusse () ba com> NOTE TO EDITORS: A video news release providing details on BAnet will be available to television stations via Medialink on Thursday, May 19. Two feeds will be provided from 2 p.m. to 2:30 p.m. and 3 p.m. to 3:30 p.m. Eastern Daylight Time. The satellite coordinates are: Telstar 302, C-Band, Transponder 8H (horizontal), Audio 6.2 and 6.8 megahertz. For additional information about the VNR, call 703-974-1720. NEWS RELEASE ************************************************************ *********************************************************** Bell Atlantic FOR IMMEDIATE RELEASE CONTACT: 703/974-1720(Thursday 5/19 only) May 19, 1994 ************************************************************************* * Bell Atlantic Plans Flexible Technology to Serve Customers with * * Broadband Full Service Network * ************************************************************************* Washington, D.C. -- Flexibility is the key to Bell Atlantic's network modernization strategy. The Bell Atlantic design enables the company to serve more customers quickly with video information and entertainment services while matching network expansion to expected revenues by using a "just-in-time" approach. The network will allow customers to receive a broad range of voice, data, image, document and video communications. "The network design strategy allows Bell Atlantic to consider all technologies and make deployment decisions on a market-by-market basis, depending on services desired and cost considerations. Customers in Bell Atlantic territory could receive their vid eo service over one of three broadband platforms constructed throughout the rest of the decade," said John Gamba, senior vice president of corporate and human resources at Bell Atlantic. The technologies include a switched digital hybrid fiber-coax platform, a switched digital fiber-to-the-curb platform, and an asymmetric digital subscriber line (ADSL) approach. Switched Digital Hybrid Fiber-Coax (HFC) _______________________________________ "A switched digital hybrid fiber-coax platform will be used in the initial mass deployment since it has cost advantages over switched digital fiber-to-the-curb," said Gamba. Switched digital HFC combines properties of fiber and coaxial architectures. The technology for mass deployment can provide 100 or more analog channels using a bus architecture. This tree and branch structure allows many customers access to the same information, thereby reducing requirements for both the transport medium and the associated electronics as compared to a switched star type architecture. In Bell Atlantic's system, 20 channels of analog AM-VSB (Amplitude Modulation - Vestigal Side Band) video and over 650 digital signals are combined in the HFC system at the company's central office. A linear analog laser transmitter converts the radio frequency (RF) electrical signal to an optical one. The optical signal is split and sent downstream over multiple fibers in the feeder network to an optical node. An optical receiver converts the signal back to an RF electrical signal. The electrical signal is amplified and broadcast over a large diameter coaxial backbone cable. Finally, the signal is delivered to individual subscribers over taps and coax drops. This system allows for maximum flexibility, including interactive multimedia connections that allow each consumer to choose his or her own programs. As demand for interactive multimedia applications increases in the neighborhood, another architecture, s witched digital fiber-to-the-curb can be deployed based on customer demand. Switched Digital Fiber-to-the-Curb __________________________________ The company plans to deploy a switched digital fiber-to-the-curb platform -- supplied by Broadband Technologies -- in Morris County and Dover Township, New Jersey. "Switched digital fiber-to-the-curb has huge capacity and can be deployed selectively in the short term and then expanded later," said Gamba. "Each platform can provide video services and can be migrated to higher capacity as demand increases for intera ctive video services." In a switched digital fiber-to-the-curb system, video programming and information are provided in a digitally compressed format (MPEG) by the video information providers and transported digitally by fiber optic equipment to the central office. The digit al video signals from all providers are combined on a video distribution element known as a Host Digital Terminal (HDT). Fibers are extended from the HDT to the pedestal. Coaxial cable carries the signal from the pedestal to the home. Only programs th at are requested by the subscriber are transmitted. ADSL (Asymmetric Digital Subscriber Line) _________________________________________ Bell Atlantic is planning to use the ADSL approach -- providing video-on-demand service over copper telephone lines -- to serve up to 2,000 customers in Northern Virginia this summer. The system has the potential to serve an additional 21,000 customers in the Washington metropolitan area. ADSL, in its present state of development, permits the multiplexing and transmission of a one-way, 1.544 Mbps digital signal along with the POTS (Plain Old Telephone Service) or basic rate ISDN (Integrated Switched Digital Network) signal, and a two-way signaling channel on an integrated basis over a single non-loaded copper pair. (Advances in both ADSL technology and video decoding techniques will provide for real-time broadcast capability in 1995, at channel rates of 3 Mbps up to 6 Mbps over a single twisted copper pair.) The ADSL central office unit works with an ADSL remote terminal located at the customer's premises. The remote terminal separates the POTS or ISDN signal from the compressed video signal. The POTS signal is transported over standa rd customer premises wiring; the broadband signal is delivered via standard twisted pair copper facilities to a set top terminal. Video programming over the system must be pre-encoded, digitized, and stored on a video server. "This flexible approach enables Bell Atlantic to deploy ADSL now to meet the market demand for video-on-demand since ADSL can be installed one customer at a time. Since it is available now, it can give Bell Atlantic a head start in the new interactive world," Gamba said. ### FOR FURTHER INFORMATION CONTACT: Shannon Fioravanti 703/974-5455
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