SBC Communications Partners with 2Wire to Launch Home Entertainment Service

SAN ANTONIO, Jan. 4/Satnews Daily/ — SBC Communications Inc. (NYSE:SBC - News) said on Monday it has formed a joint venture with 2Wire Inc. to deliver a home entertainment service that integrates satellite TV programming, digital video recording, video on demand, and Internet content and music via an award-winning new set-top box. The joint venture, SBC said, is part of a two-pronged SBC video strategy to extend home entertainment video services to customers through either high-speed fiber or DSL.

The service will combine content delivered by broadband and satellite into one easy-to-use package, giving consumers a powerful new way to extend the SBC Yahoo! DSL experience beyond the desktop to bring entertainment content to their TV screens and stereos. The announcement builds on the recently announced expanded alliance with Yahoo! Inc. which calls for the companies to extend the SBC Yahoo! customer experience beyond the desktop. It is expected to roll out in mid-2005.

"The SBC home entertainment service will bring together many of the features that consumers want most, including TV programming, video on demand and Internet content and services, in a way that competitors and cable TV providers can't match," said Ed Cholerton, CEO of the newly formed SBC Media Solutions LLC and vice president of SBC DSL. "It allows quick delivery of a complete, personalized and seamless entertainment and communications service to our customers while SBC companies build a fiber network. It is another important milestone in the SBC 'grand slam' strategy of leadership in landline voice, wireless, broadband Internet and video services."

The service will include a satellite TV receiver, digital video recorder (DVR) and storage for digital photos and music. Customers will benefit from the 2Wire MediaPortal technology, which will provide fully integrated SBC Yahoo! DSL, SBC, Dish Network satellite TV and home-networking services, and will allow customers to access photos and music and to schedule their digital video recorder (DVR) remotely from any Web-connected computer through the SBC Yahoo! user interface. A future enhancement will allow remote access through Cingular Wireless phones.

Customers will also be able to enjoy total integration and control from the comfort of their easy chair, using a remote control and a familiar, easy-to-use interface on their TV screen. An agreement with EchoStar Communications Corp. to include SBC Dish Network will help ensure that broadcast content works seamlessly with the new set-top box service, offering customers unprecedented ease of use for digital video recording, remote access and video on demand.