Wyoming Telco Uses VDSL and ADSL from Next Level to Deliver Telco TV in the Wild West

Business Wire, April 3, 2003

Business Editors/High-Tech Writers

ROHNERT PARK, Calif.--(BUSINESS WIRE)--April 3, 2003

Local Programming, Picture Quality, Versatile Equipment Help

Tri County Telephone Beat Cable, Satellite Giants

Next Level Communications (Nasdaq:NXTV) is demonstrating the versatility of its equipment in a deployment for Tri County Telephone (TCT) in northwestern Wyoming. TCT is taking advantage of the Next Level Full Service Access Platform's ability to deliver both high bandwidth VDSL and lower bandwidth, longer range ADSL to deliver cable-competitive digital TV, high speed Internet and telephone services to 13 communities spread over 450 square miles in and around Big Horn County, WY. The telephone company uses VDSL to serve businesses and urban areas, and ADSL to extend the reach of its "triple play" of services to more rural areas.

"We love Next Level's equipment because it is so versatile, there are appropriate deployment scenarios for both VDSL and ADSL," said Chris Davidson, outside plant manager for TCT. "The VDSL technology allows us to deliver as much as 26 Mbps into businesses and homes in town, and the ADSL allows us to reach twice as many homes. With other equipment, you're stuck with one DSL size fits all. With Next Level, all you have to do is replace a card to go from VDSL to ADSL, and in doing so both optimize your service offering while maximizing your service area."

TCT is using Next Level's equipment to beat Comcast cable head-to-head for subscribers, and estimates that it will be cash flow positive next year. The small telco delivers a package of 131 digital TV channels, digital music, pay per view and multiple high-speed Internet packages, and further differentiates itself from competitors by delivering local programming, like high school sports events, coaches shows and town meetings, even exclusive interviews with state politicians.

"We recently broadcast an interview with the governor of Wyoming exclusively to TCT subscribers -- something that a nationwide cable company doesn't consider and satellite couldn't even dream doing," said Randy Lowe, general manager of TCT. "I've been a customer of AT&T and Dish Network and I can tell you first hand that those guys are way behind us in both programming and technology -- with Next Level we can provide our customers with the local content that they want, better picture quality and reliability, faster channel change, a better interactive programming guide -- the works. We honestly don't understand why everyone isn't doing this."

"TV services are attracting customers at the beginning, because people can easily appreciate what the clarity and expansive channel offerings that 100% digital TV provides," added Rod Collingwood, a technician for TCT. "But broadband is what gets them hooked. Most of our customers are trying high-speed Internet for the first time, and once they try it, there is no going back, they've got to have that Internet fix."

TCT's bundled services have been very popular with local schools, businesses and government facilities, like the Big Horn County Jail. The local prison uses VDSL technology delivered over Next Level equipment to offer TV programming and high-speed Internet access to prisoners, guards and the adjacent sheriff's office.

"Each Next Level gateway can serve 3 TVs, so we have three gateways to serve 9 different TVs, which services the entire facility, including the inmates," said Deb Rathbun, detention secretary for Big Horn County Jail. "The speed of the Internet access is mind-boggling, and the ability to pay for telephone, Internet and TV in one bill simplifies accounting of the services across multiple departments. All the visitors we have marvel at this technology, and wish they could get it for their own facilities."

"The TCT deployment highlights an element of the Next Level platform that we've engineered from the beginning -- versatility," said J. Michael Norris, chief executive officer of Next Level. "Most telcos have a mixture of subscribers and potential customers. Some are easy to reach, and some of the more rural ones are much more difficult, yet they all want the best possible communications and entertainment services. Our platform has proven that it can accommodate any of these deployment scenarios cost effectively, and enable any telco to provide offer its customers the world's foremost communications and entertainment services."

About Next Level Communications

Next Level is a world leader in integrated broadband access platforms for delivering any combination of voice, high-speed data and multi-stream digital video services into the home or office. Next Level offers a unified multi-service, multi-band platform that lets communications service providers enter a more profitable broadband market segment by delivering a virtual communications and entertainment center over existing copper telephone lines. Next Level's highly scalable networking products, management tools and support assistance allow communications service providers to deliver a range of subscriber services, and realize significant new revenue streams. Founded in 1994 and headquartered in Rohnert Park, Calif., the company has deployed its state-of-the-art systems for more than 100 communications service providers worldwide. For additional information, visit http://www.nlc.com.