First Investor-Owned Utility to Roll Out High-Speed Internet Access Through “Third Wire” into Homes
GERMANTOWN, MD March 2, 2004 – Current Communications Group and Cinergy Broadband, LLC, an subsidiary of Cinergy Corp. (NYSE:CIN) today announced the first large-scale rollout of broadband over power line (BPL) technology and services in the United States. As part of its nationwide strategy, Current offers consumers and small businesses affordable and user-friendly high-speed Internet and voice over IP (VoIP) telephone services by using electric power lines as a more cost-effective alternative to cable and telephone lines.
Current, which is an industry leader in developing the latest technology to adapt electricity lines to deliver broadband access, has formed two joint ventures with Cinergy, a diversified energy company. The first venture will provide a bundle of broadband and voice services to Cinergy’s 1.5 million customers in Ohio, Indiana and Kentucky. The second venture will deploy BPL to smaller municipal and cooperatively owned power companies covering 24 million customers across the United States.
In addition to the joint ventures, Cinergy has made an investment in Current as part of a larger round of financing led by Current’s existing investors, Liberty Associated Partners and EnerTech Capital. The aggregate amount of financial commitment to Current and the BPL joint ventures by all parties in these transactions exceeds $70 million.
The rollout of the integrated solution is underway in the greater Cincinnati area. Initial deployment follows 14 months of trials, during which the network’s robust performance and reliability produced high customer satisfaction and a strong interest in enrolling in the commercial service.
The announcement by Current and Cinergy follows last week’s release by the Federal Communications Commission of proposed rules to facilitate the deployment of BPL over the electric power grid. The FCC’s leadership in focusing on the untapped capabilities of the nation’s power grid will help provide high-speed Internet access to all areas, including those in which there is a limited choice of broadband providers or no broadband coverage at all.
"We fully anticipate that customers will be attracted to the total simplicity of our service. We don’t just bring broadband to the home; we bring broadband to where the customer wants it - in every room in the home. You just plug the computer into any outlet, and you have an instant, always-on connection to the Internet,” said Ronald Boillat, President of Current Communications Services, LLC, Current’s broadband services subsidiary.
“For our customers, we now bring them a robust set of communications services while creating a network that will enhance the operations of Cinergy’s core electrical distribution network,” said William J. Grealis, Executive Vice President of Cinergy.
By tapping the power grid and using technology developed by Current’s equipment subsidiary, Current Technologies, LLC, the new service allows consumers to receive broadband services immediately through their electrical outlets. Users need to simply plug a low-cost and widely available HomePlug® power line modem into an electric socket anywhere in a house or office without the need for professional installation or any additional wiring in the home. For Internet users, Current Broadband™ service offers:
• “Always-on” high-speed Internet access from power outlets throughout the home or business
• Voice over IP capability for lower-cost telephony services over the network
• Upload and download access at the same high speeds
• Local area networking from all power outlets over existing electrical wiring without any additional wiring or equipment
• Faster speeds at a lower monthly cost than other broadband services
• Multiple speeds and pricing plans to meet individual needs and budgets
• Truly “Plug-and-Play” installation with no router or installation CD for activation within minutes.
Current Technologies™ BPL equipment and network solution will also be used to implement important new services providing improved reliability and increased efficiency for utility subsidiaries and their customers. BPL technology can enable a variety of Enhanced Power Distribution Services, including:
• Automated outage detection and restoration confirmation
• Automated meter reading
• Remote monitoring and operation of switches and transformers
• Remote capability to connect and disconnect electric service
• More efficient demand-side management programs
Current’s strategy centers on providing enabling technology solutions, service at the retail level under the Current Broadband™ brand and service at the wholesale level for other service providers, such as Internet service providers, long distance carriers and satellite companies. Current also has the strategic and financial flexibility to allow utility partners to offer BPL either through joint venture relationships or as a customer of Current’s technology and service solutions independently.
Current Communications Group, LLC is a privately held company based in Germantown, Maryland. Current develops innovative power line equipment, technology and solutions for delivering broadband services over power lines domestically and internationally. Current is backed by Liberty Associated Partners, LP, Enertech Capital and Cinergy. Liberty Associated Partners is an investment fund focusing on equity investments in telecommunications, media, Internet and related technology companies and is managed by the Associated Group, LLC. EnerTech Capital is a venture capital firm focused on investing in software and technologies that service the energy and communications markets. Many of the investors in Enertech Capital’s funds are major U.S. and international utilities.
Cinergy has a balanced, integrated portfolio consisting of two core businesses: regulated operations and energy merchant. Cinergy’s regulated delivery operations in Ohio, Indiana, and Kentucky serve 1.5 million electric customers and about 500,000 gas customers. In addition, its Indiana regulated operations own 7,000 megawatts of generation. Cinergy’s energy merchant business is a Midwest leader in low-cost generation owning 6,300 megawatts of capacity with a profitable balance of stable existing customer portfolios, new customer origination, marketing and trading, and industrial-site cogeneration. The “into Cinergy” power-trading hub is the most liquid trading hub in the nation.
For further information, please contact:
Jay L. Birnbaum Current Communications Group, LLC 301-515-7617
Scott G. Bruce Liberty Associated Partners, LP 610-660-4910
Frank De Maria Brunswick Group, LLP 212 333 3810
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management's beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as "anticipate", "believe", "intend", "estimate", "expect", "continue", "should", "could", "may", "plan", "project", "predict", "will", and similar expressions. Forward-looking statements involve risks and uncertainties that may cause actual results to be materially different from the results predicted. Factors that could cause actual results to differ materially from those indicated in any forward-looking statement include, but are not limited to, unanticipated weather conditions; unscheduled generation outages; unusual maintenance or repairs; unanticipated changes in costs; environmental incidents, including costs of compliance with existing and future environmental requirements; electric transmission or gas pipeline system constraints; legislative and regulatory initiatives; additional competition in electric or gas markets and continued industry consolidation; financial or regulatory accounting principles; political, legal, and economic conditions and developments in the countries in which we have a presence; changing market conditions and other factors related to physical energy and financial trading activities; the performance of projects undertaken by our non-regulated businesses and the success of efforts to invest in and develop new opportunities; availability of, or cost of, capital; employee workforce factors; delays and other obstacles associated with mergers, acquisitions, and investments in joint ventures; and costs and effects of legal and administrative proceedings, settlements, investigations, and claims. Please refer to the company's SEC filings for additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to update the information contained herein.
Press Release SOURCE: Current Communications Services, LLC