Rhythms NetConnections Signs Interim Agreement with U S WEST for DSL Services

Strategic Insights -

Rhythms NetConnections, a North American provider of DSL-based broadband communication services, has signed an interim agreement with U S WEST for the deployment of line-sharing services in U S WEST's 14-state region. The agreement provides deployment schedules, ordering procedures, and network architecture choices that will enable Rhythms to offer effective line-shared services and increase service choice for customers. The no-charge line-sharing rate is effective immediately and may be extended until June 1, 2001, if certain contingencies are met.

Key Takeaways:

  • Rhythms NetConnections has signed an interim agreement with U S WEST for the deployment of line-sharing services in U S WEST's 14-state region, providing deployment schedules, ordering procedures, and network architecture choices.
  • The agreement allows Rhythms to pay no monthly charge to use customers' existing voice lines for digital subscriber line (DSL) services.
  • The no-charge line-sharing rate is effective immediately and may be extended until June 1, 2001, if certain contingencies are met.
  • Rhythms currently serves 47 markets, covering 84 metropolitan statistical areas (MSAs).
  • The agreement follows up on an earlier announcement on April 10, 2000, and positions Rhythms to deploy line sharing and bring DSL services over shared lines to customers in U S WEST's territory.
  • Rhythms is dependent on third parties for services such as providing collocation and transmission facilities, providing marketing and sales efforts, and supplying and installing equipment.
  • Forward-looking statements by Rhythms may involve risks and uncertainties, including the demand and competition for services and products, adequate financing, rollout timing, potential customer access, and dependence on third-party services.

Statistics:

  • 14 states in the U S WEST region.
  • 47 markets currently served by Rhythms.
  • 84 metropolitan statistical areas (MSAs) currently covered by Rhythms.
  • 1-800-RHYTHMS (1-800-749-8467) - phone number for more information.
  • www.rhythms.com - company Web site.
  • April 10, 2000 - date of earlier announcement.
  • June 1, 2001 - potential extended deadline for no-charge line-sharing rate.

Sources:

  • Rhythms NetConnections Inc., U S WEST, Nasdaq: RTHM, PRNewswire, Englewood, Colo.