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Business Services Industry

It's Here: Free, Unlimited Internet Access Nationwide

Business Wire,  March 5, 1997  

DOVER, Del.--(BUSINESS WIRE)--March 5, 1997-- -0-

  --  j3 Communications, Inc. announces free, unlimited access offer
      nationwide
  --  240 local connect numbers
  --  28.8 kbps connect speeds, soon to be upgraded to 56kbps
  --  Infrastructure ready for 600,000 customers now
  --  Customers can be "surfing the 'Net" an hour after downloading
      software from company's Web site

-0-

j3 Communications, Inc., a little-known telecommunications company with the resources and aspiration to become a major player among Internet service providers (ISP), announced today it will offer free Internet access across the nation.

The move could have profound impact on the industry and j3 president James Wagner stressed this is not a marketing gimmick to capitalize on America Online's woes.

"We have the infrastructure to support as many as 600,000 customers right now -- at 28.8 speeds, via 240 local connect numbers, with free e-mail, free newsgroups and free chat, " said the 29-year-old visionary. "We anticipated the confusion and frustration we see now would demand a simple rate structure -- and free is as simple as it gets."

The Bar Hasn't Been Raised, It's Been Eliminated

Wagner is aware of the potential income j3 is forfeiting, estimating $12 million per month could be collected from 600,000 customers at today's standard $19.95 rate. The real bottom line for j3, though, is getting long distance business. To gain access, a customer must make j3 his or her long distance carrier. The costs of maintaining a working, accessible Internet connection will be subsidized by the money the company stands to make on long-distance business.

"There is no 'hidden cost,'" assures Wagner. "Our rates are very competitive. We can do this because we are both an ISP and a telecommunications company. AOL isn't. Neither is Compuserve, MSN, Netcom or any of the others. We're not pulling wool over anyone's eyes. In fact, we're saving most people $240 a year right away."

David and Goliath

"Why haven't the big telecommunication companies done this?" laughs Wagner. "Think about how much money it means to them, and think about the crisis AOL has had by announcing a $19.95 flat rate. People would break down their doors. They won't do anything unless they have to and they're going to have to do something now."

In the classic role of an underdog, j3 has thrown the stone that could send the industry's giants reeling -- and create another issue for AOL to deal with. Wagner is confident j3 is ready for the expected rush of customers.

"I will not promise this will be a glitch-free ride," cautioned Wagner, "but we've coordinated everything down to the last detail and I don't see us encountering any major problems. Plans are already in place to begin expanding our capacity as soon as we pass 150,000 customers -- and we will not, under any circumstances, oversell our capacity."

No More Long Waits to Get On-line

Wagner didn't want to mislead with the 600,000 figure either, explaining that it represents the total capacity of j3's current network. The way the Internet is connected limits how many accounts j3 can accept from different parts of the country.

"The regional limitations affect every ISP," explained Wagner, "you just don't hear that when they throw out their member numbers. We won't be able to take on 400,000 accounts from California because the existing connections won't sustain that much traffic -- until we build out the system."

The mission for Wagner and j3 is to manage the network so there are no endless waits for a connection. If that means temporarily suspending new accounts so the service quality to existing customers is maintained, then that's what will happen.

Upgrades Already In The Works

Offering further evidence that j3 is a service for the long term, Wagner said 56k speeds will be supported soon in many areas. Additionally, the company's Web site, <http://www.j3com.com/index.ht m> provides a wealth of resources for the novice and Webmaster alike, and the connection software is so easy to download and start that one can be up and running in less than an hour.

The Details

Anyone already on-line with access to the World Wide Web can join j3's service by completing the form at (http://www.j3com.com/j3_offer .stm). After providing a credit card number through the site's secure server, a person downloads the appropriate software from the site (Windows 95 only - Macintosh 7.x owners must request disks in the mail) and within an hour, an account is created for unlimited, free access. j3 charges a $25 activation fee to the credit card, and monthly long distance charges are deducted automatically from the card.

Those who are not yet on-line (and Macintosh owners) can call 1-800-563-3332 to sign up and receive the needed software. Complete details, frequently asked questions and easy-to-understand terms and conditions are available at the company's Web site.