BellSouth and Darwin Networks Partner to Deliver High-Speed Internet Access; Unique Agreement Makes ADSL Available to More Locations - Company Business and Marketing

Cambridge Telcom Report, Jan 17, 2000

Darwin Networks, Inc. and BellSouth announced Monday a unique agreement to accelerate the deployment of asymmetric digital subscriber line (ADSL) in BellSouth markets. Under the agreement, Darwin Networks will lease ADSL central office equipment to BellSouth, which will then deliver ADSL service on a wholesale basis to Internet service providers (ISPs) such as Darwin Networks. ISPs will actually market ADSL on a retail basis to residential and business customers.

Three Kentucky cities, Bowling Green, Frankfort, and Pikeville, will be the first to receive ADSL services in February under this new arrangement.

"BellSouth and Darwin are joining forces to make ADSL service available to smaller cities and communities faster than might otherwise be possible, in some cases as much as a year earlier," said John Cahill, executive director, BellSouth Advanced Networking. "BellSouth began deploying ADSL service in September 1998 and will offer the service in 33 Southeastern markets by the end of this year, making high speed Internet access available to nearly six million telephone lines that meet the technical specifications."

David Gibbs, president of Darwin's Telco Division and one of the company's founders, said "the agreement started with a goal to enhance communications for everyone, not just those living in major metropolitan areas. Making high speed Internet access available to everyone evens the playing field for smaller towns to compete for economic development projects, supports the entrepreneurial spirit and provides exciting possibilities to retain and enhance the quality of how we work, live and play."

ADSL delivers speeds up to 50 times faster than standard dial-up modems. Large data files such as audio files, research documents, products literature and patient records can be downloaded or transferred in seconds rather than minutes. Consumers can make travel reservations online, and small business can conduct electronic sales via the Internet in seconds.

BellSouth's consumer ADSL provides a maximum download speed of 1.5 megabits-per-second (Mbps) and a maximum speed from the user's computer to the Internet of 256 kilobits per second (Kbps). Since it is an "always-on" Internet service, there's no waiting to dial up or connect. ADSL is delivered over existing telephone lines.

Darwin Networks provides high speed data communications solutions and Internet access to owners of apartment complexes, hotels, small and medium-sized businesses, office buildings and telephone companies using wireless and Digital Subscriber Line (DSL) technologies. Darwin Networks offers a full complement of marketing and support services to assist hotels, property managers, small and medium-sized businesses market and implement the new service, including Web page content development to promote high speed Internet access, and training programs.

Darwin Networks has corporate offices in Louisville, KY; Walnut Creek, CA; and Seattle, WA, and has agreements both in place, and in progress, to launch services in more than 400 locations in over 20 states. In August 1999, Darwin completed $27.5 million in venture financing. Investors include, Broadband Solutions, LLC (led by Chrysalis Ventures), Paul Allen's Vulcan Ventures, Richland Ventures, River Cities Capital and associates of Moore Capital. For more information about Darwin Networks, contact please visit www.darwin.net.

BellSouth is a $25 billion communications services company. It provides telecommunications, wireless communications, cable and digital TV, advertising and publishing, and Internet and data services in 19 countries worldwide. More information about BellSouth may be obtained on the Web at www.bellsouth.com.