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Sent: Sunday, February 06, 2005 10:31 AM
Subject: Lebed.biz Alert


> A huge article just came out today about XDSL in the Stamford Advocate!
What other OTC BB stocks receive such good publicity like this? The best
part is XDSL receives major publicity each week about not only their TV+
system but also their nanotechnology batteries.
>
> As cable TV invades phone companies' turf, Norwalk's mPhase helps the
telcos retaliate
>
> --------------------
>
> By David Jastrow
> Special Correspondent
>
> February 6, 2005
>
> Cable companies have cut into telephone provider profits with
Internet-based phone services, but they won't go down without a fight.
Today, they are marketing premium television packages through partnerships
with satellite television providers.
>
> Systems from Norwalk's mPhase Technology soon may help place more TV power
into the cradle of telephone companies.
>
> "Our software allows telephone companies to offer services that are a lot
more feature rich," said Mary Whelan, executive vice president of marketing
and communications at mPhase. "We can give consumers better control."
>
> Using a homogeneous Internet Protocol infrastructure, mPhase's "TV+"
allows telephone providers to give every TV customer a unique identification
code, just like a personal computer connected to the Web. This address gives
phone companies the ability to deliver services cable companies cannot,
Whelan said.
>
> "The IP address allows the telecoms to create new services," she said. "It
gives viewers the ability to interact and control what they watch more
effectively. It means (telephone companies) can begin to offer services that
are much more feature-rich and differentiated from one-way broadcast content
delivery."
>
> Cable and satellite operators can deliver broadcast TV, high-definition,
video-on-demand and pay-per-view services. But mPhase's software takes these
capabilities further.
>
> The technology adds personal video recorder services that allow
subscribers to view live or recently broadcast programs on demand. It also
adds two-way action for video games and viewer selection of camera angles.
>
> mPhase's software has e-commerce features, so viewers can buy products
they spot while watching their favorite shows and live events on television.
>
> Most importantly, it enables telecoms to air TV newscasts or high school
sporting events that are enticing to local communities. IP addressing also
lets phone companies provide targeted advertising, giving them more local
advertising opportunities and sponsorship dollars.
>
> "The industry is maturing, but we set up standards that allow telephone
companies to mix and match computers seamlessly," Whelan said. "With our
technology, telephone companies are not locked into a proprietary
environment. They can use different kinds of hardware and organize content
in a flexible manner. The consumer controls the experience."
>
> Bob Larribeau, senior analyst specializing in telecommunications for
Sunnyvale, Calif.-based IT researcher Multimedia Research Group, said
providing IP-based technology to telephone companies is an emerging market
set to take off. He said mPhase's services should be valuable to small
telephone companies serving rural markets.
>
> "Most rural telephone companies are behind the curve in terms of video
services," Larribeau said. "The key advantage they can provide over
satellite is local content. If a telephone company can broadcast local high
school football and basketball games, people want to watch that."
>
> One concern with mPhase's software is the possibility that having IP
addresses placed on consumer TVs would leave them vulnerable to the computer
virus attacks faced by PC users.
>
> mPhase's technology is designed to protect from such attacks, said Phil
Thompson, executive vice president of product management.
>
> "We do lots of things in-network to protect them from denial of service
attacks," Thompson said. "We have very constrained in-points that are not as
open as PCs. Our software uses IP addresses, but it's not like turning a TV
into a PC."
>
> However, there are no guarantees.
>
> "Anybody who tells you not to worry about hackers and virus attacks on IP
networks is crazy," Larribeau said. "But set-top boxes are not Internet
appliances, so they are not out on the Internet that much."
>
> mPhase has good timing with its product launch, as telcos are increasingly
eager to fight cable companies whose long customer reach is extending ever
further into the domain of telephone providers.
>
> Locally, Cablevision System Corp.'s Optimum unit began offering
Internet-based telephone service in most of Stamford and much of Fairfield
County via cable modems last year. The service is sold at a cheaper price
than traditional telephone service.
>
> The nation's largest cable company, Comcast Corp., announced early last
month that it, too, would plunge into the telephone fray with its own Voice
over Internet Protocol phone services. The technology allows cable companies
to offer unlimited local and long distance phone service at $30 to $40 a
month.
>
> Cablevision's Optimum offers Internet phone service as part of a $90
bundle that also features digital cable and high-speed Internet access.
>
> VoIP provider Vonage Holdings Corp. charges an even lower $24.99 monthly
fee, too cheap for most traditional phone companies to compete on price.
>
> At an investor conference in Phoenix early last month, Comcast Chief
Executive Officer Brian Roberts said the company could generate more than
$3.8 billion in revenue within five years from telephone services if the
cable giant meets its target of attracting 8 million subscribers.
>
> The company expects to market the Internet phone service to 15 million
homes by the end of this year and almost all of its 40 million customers
within 18 months. This would be a big boost for Comcast and a major threat
to telephone companies.
>
> "There is going to be a profound change in what a phone is in a home, and
we're going to be part of that process," Roberts said in an interview with
business news service Dow Jones & Co.
>
> As competition heats up, so likely will business for companies such as
mPhase.
>
> The publicly traded firm (OTC: XDSL), which mostly sells digital
subscriber line equipment -- its TV services are delivered over DSL --
generated sales of $4.6 million in its fiscal 2004, a 193.4 percent increase
over $1.6 million in fiscal 2003.
>
> However, its net loss widened to $7.8 million in 2004, compared with a
loss of $6.6 million a year earlier.
>
> To date, mPhase's activities have centered on designing, building and
testing a suite of broadband communications software and equipment, but it
has not yet generated substantial revenues from the products, according to
the company's latest annual report.
>
> Headquartered in Norwalk, with locations in New York City and Atlanta,
mPhase was started in 1996 as a spin-off of MicroPhase, a military products
manufacturer and filtering software developer.
>
> The mPhase TV+ system was developed with the Bell Labs division of Lucent
Technologies Inc. The company's key competitors are Alcatel, Next Level
Communications, which recently became a division of Motorola, and units of
several other technology vendors.
>
> In December, the company published its "As You Like It Service Guide," a
planning tool that telephone company strategic planners can use to deliver
digital interactive TV services. The document is available on the Internet
after registering on the mPhase Web site, mphasetech.com
>
> Telephony, a leading trade news magazine, recently stated that mPhase
Technologies "moved into what is largely a next logical step in its
development by launching a services creation strategy designed for telecos
competing against incumbent cable and satellite providers in the video
market."
>
> Despite challenges, Larribeau said the company is poised for growth.
>
> "You are going to see a lot more about telephone companies offering TV
services," he said. "It's an important new market and mPhase is pretty well
positioned. They offer a more comprehensive approach than most of their
competitors and an interesting ability to do customization. They have to do
a good job with all clients. If they can do that, they should do well."
>
> Copyright (c) 2005, Southern Connecticut Newspapers, Inc.
>
> -----
>
> My firm Lebed & Lara, LLC, has been compensated by XDSL 100,000 shares of
restricted stock for a one-year investor relations contract. Never invest
into a stock we discuss unless you can afford to lose your entire
investment. For our full disclaimer goto:
http://www.lebed.biz/disclaimer.htm
>
> Jonathan Lebed
> Lebed.biz
> Staff
>