Convergys Announces Cable Telephony Billing And Subscriber Management Contract With MediaOne

Business Wire, Oct 29, 1998

CINCINNATI--(BUSINESS WIRE)--Oct. 29, 1998--Convergys Corporation, the global leader in providing outsourced, integrated, customer care and billing services, announced today it has signed a contract to support the cable video, cable telephony, and high-speed Internet service offerings of MediaOne(R).

Colorado-based MediaOne is one of the nation's leading broadband services companies and serves more than 5 million customers.

Under terms of the contract, Convergys will license its new ICOMS integrated video, data, and telephony solution developed specifically for the cable industry. Over the seven-year term of the contract, Convergys expects to generate revenues ranging up to $135 million. The contract also has an automatic renewal clause for an additional seven years.

"This agreement with MediaOne is a reflection of Convergys' strategy to vigorously pursue growth into new areas and new markets. A major example of the success of that strategy is our continuing growth in the cable and broadband markets as evidenced by this important contract with MediaOne, a top U.S. broadband services provider," said Jim Orr, president and chief executive officer of Convergys. "When we entered this market early in 1996, we had about 7 million subscribers under contract. With the addition of MediaOne, Convergys will have tripled that number and gained a market share approaching 30 percent in North America. That is rapid growth and reflects our ability to deliver market solutions to our clients."

The Convergys ICOMS solution, which will be implemented in initial markets in 1999, will be supporting MediaOne as it upgrades its national hybrid fiber optic/coaxial cable network to provide high-speed Internet access, cable telephony, and advanced digital services. These additional service offerings, which are already available in some markets, will be available by the end of 2000 to all 8.3 million homes MediaOne passes in its service area.

The Convergys CableMaster and ICOMS solutions -- developed specifically for the integrated video, data, and telephony markets -- utilize a fully integrated, on-line, real-time relational database, giving all functions and departments the ability to update and access data at all times. Through licensed and managed service installations, these solutions support many of the major markets of leading cable system operators worldwide including Time Warner, Cox Communications, Comcast, Suburban, Telewest, Cableuropa, and Helsinki Televisio.

ABOUT MEDIAONE

MediaOne, the nation's leading broadband services company, provides entertainment, information, and communications services to about 5 million customers. MediaOne Group (NYSE:UMG) is one of the world's largest broadband communications companies, bringing the power of broadband and the Internet to more than seven million customers in the United States, Europe, and Asia. The company also has interests in some of the fastest-growing wireless communications businesses outside the U.S., serving more than three million customers. For 1997, the businesses now part of MediaOne Group produced $6.6 billion in proportionate revenue.

ABOUT CONVERGYS

Convergys Corporation (formerly CBIS and MATRIXX Marketing) is the global leader in providing outsourced, integrated, customer care and billing services, bringing together world-class resources and expertise to help clients transform customer relationships into a competitive advantage.

Convergys software produces more than one million bills each day, and Convergys customer care handles more than one million calls each day.

Convergys serves the top companies in a wide range of industries, including communications, technology, cable and broadband services, consumer products, financial services, utilities, healthcare, hospitality, and direct response. Headquartered in Cincinnati, Ohio, Convergys employs over 30,000 people at its more than 30 call centers, data centers, and other offices in the United States, Canada, and Europe.

Convergys (NYSE:CVG) is on the Web at http://www.convergys.com.

CableMaster is a registered trademark of Convergys Corporation.

Convergys is pronounced: kun VER jis