MEDIA ALERT/InfoWorld Breaks Story On Alliance Between Utility Companies And Computer Industry Giants

Business Wire, Jan 21, 2000

Business Editors &High-Tech Writers

SAN MATEO, Calif.--(BUSINESS WIRE)--Jan. 21, 2000

Report Says Billion Dollar Pact Includes HP and Oracle,

Plans to Offer Voice, Data, TV Services Over Fiber This Summer

IDG's InfoWorld, the IT newsweekly that defines technology for business, is reporting a story on a secret billion dollar pact between utility companies and computer industry giants, including Hewlett-Packard and Oracle Corp., to begin offering voice, data and TV services over fiber beginning this summer, according to the report.

The story will be posted on www.infoworld.com on Jan. 21, and will appear Jan. 24 on the front page of InfoWorld.

InfoWorld editor-at-large Ephraim Schwartz reports that the secret alliance will allow utility companies to deliver telecommunications, power, gas and other services on a single bill for hundreds of dollars less per year from a trusted and familiar company.

According to Schwartz, the source said by combining high-speed fiber optics, affordable service and consolidated billings, the offering will dominate the telecommunications industry over the next decade. Hewlett Packard will manage and offer hosting services while Oracle is creating the databases to maintain the underlying infrastructure. The potential multi-billion dollar revenues, that the consortium could generate, will be divided up between the players, according to the report.

The nation's utility companies have access rights to every home and business in their coverage area as well as a great deal of unused fiber connections already in place -- giving them a huge advantage over rivals in the network-provision market. The savings to consumers from a single point of delivery may also be substantial. According to the report, the initial charge for a 10 Mb connection to the home will be $13.95 per month.

For the full text of the InfoWorld exclusive, go to www.infoworld.com