Telocity and Citi f/i Announce Broadband Service Partnership

Strategic Insights -

Telocity, a leading provider of residential broadband services, has entered into an affinity marketing agreement with Citi f/i, the online virtual bank from Citibank and Citicorp Investment Services. The partnership will allow Citi f/i customers to access their financial relationships via Telocity's ultra-fast and secure broadband service. Under the agreement, Citi f/i customers will be offered up to three months of Telocity service at no charge, and upon expiration of the trial period, they will have the opportunity to continue their Telocity service at the base rate of $49.95 per month.

Key Takeaways:

  • Telocity and Citi f/i have entered into an affinity marketing agreement to offer broadband services to current and new Citi f/i customers.
  • The partnership will be marketed by Citi f/i through traditional and online means, including direct mail and Internet banner advertising.
  • Current and new Citi f/i customers will be offered up to three months of Telocity service at no charge, subsidized by both Telocity and Citi f/i.
  • Upon expiration of the trial period, Citi f/i customers will have the opportunity to continue their Telocity service at the base rate of $49.95 per month.
  • Telocity's end-to-end service comes bundled with its self-installable Residential Gateway, high-speed DSL access, and multimedia-rich services, content, and communications customized for high-speed connections.
  • Citi f/i customers will be able to surf, shop, and communicate over the Internet at speeds up to 50 times faster than with a traditional dial-up Internet service provider (ISP).
  • Citi f/i is a full-service, virtual bank that allows customers to perform daily banking and investing activities over the Internet or telephone.

Statistics:

  • 115 major U.S. Metropolitan Statistical Areas (MSAs) across the United States are covered by Telocity's current broadband footprint.
  • Citi f/i expects to begin marketing the Telocity service by the latter half of 2000 in select metropolitan areas throughout the U.S. where Telocity service will be available.
  • Telocity's services are bundled with its self-installable Residential Gateway, high-speed DSL access, and multimedia-rich services, content, and communications customized for high-speed connections.

Sources:

  • Business Wire, "Telocity and Citi f/i Announce Broadband Service Partnership" (May 9, 2000)
  • Telocity press release, "Telocity and Citi f/i Announce Broadband Service Partnership" (May 9, 2000)
  • Citi f/i website, [www.citifi.com](http://www.citifi.com)
  • Citibank website, [www.citigroup.com](http://www.citigroup.com)