A New Nationwide Multi-Channel Video Network

Northpoint Technology, Ltd. is seeking the regulatory approvals needed to launch a new nationwide video and data distribution network through a series of 68 affiliated companies operating under the brand name Broadwave. This new technology and its affiliate network have the potential to make a great contribution to providing local signals and other high speed digital content in rural areas.

The Broadwave distribution network plans to carry all local over the air television channels, a good selection of cable networks, pay per view programming as well as high-speed wireless internet services. The service will offer a high quality digital picture, accessed via an ordinary television and a set top box sold in consumer electronics stores.

The target retail price for this service will be substantially below comparable cable rates due to the low infrastructure cost of the Northpoint transmission system. For example, a basic television package with 64 digital channels might be offered under $20 per month. An internet and cable offering with 96 channels of digital television programming and 100 hours of high speed Internet access might be priced at approximately $39 per month.

Wireless Transmissions for Lower Cost Deployment

The system is based on "Northpoint Technology," an advanced, patented digital wireless system that enables terrestrial broadcasters to share frequencies with geo-stationary and certain other satellite providers. It will operate in 12.2 - 12.7 GHz, the same band used by satellite television providers. The benefits of operation in this band are the wide availability of low cost, band-specific consumer reception equipment and off-the-shelf encoding and transmission systems. These low cost components will translate into inexpensive transmission systems and a significant cost advantage.

Northpoint-enabled set top boxes will be sold via the same electronics retailers and local antenna dealers who have been successful at selling over 10 million direct broadcast boxes since 1994.

Local and National Programming to be Offered

However, in contrast to the direct broadcasters, Northpoint-enabled systems will not have a "local signal problem" - the Northpoint system is high capacity so all over the air channels will be carried in addition to high-speed Internet, which is also unavailable through the direct broadcast set top box. In addition to local programming, it is anticipated that Northpoint-enabled systems will also carry a broad range of traditional cable programming such as CNN and HBO.

Nationwide Coverage through a Network of Affiliates

Northpoint intends to deploy its system through a network of wholly owned operations and joint ventures made with local partners. This locally based strategy will allow Broadwave services to be offered simultaneously across the country, rather than in a serial market by market roll out. Once the service has been authorized, it is anticipated that it will begin operating within six months with full build out within two years.

This service has the potential to bring digital services to many areas that have no other realistic chance to gain service by wire-line or any other means. The attached analysis of the San Antonio, Texas DMA demonstrates the low cost nature of the Northpoint infrastructure and how it is possible to attain deployment in sparsely populated areas in addition to urban and suburban markets.

Table. 1 Analysis of Cost of Repeater Infrastructure in San Antonio, Texas DMA

For more information please contact:

Sophia Collier
President
Northpoint Technology, Ltd.
One Harbour Place
Suite 475
Portsmouth, NH 03801

Executive Assistant:
Judy Glidden

(603) 431-5511
(603) 433-9237 Fax