CAMPBELL, Calif., March 11, 2003 (PRIMEZONE) -- While so-called "Wi-FI," or 802.11 in its various iterations (a, b, g....x) is all the rage right now in specific, urban areas and wired broadband has grown from 10 million subscribers to 16 million in the past year in the U.S., industry veterans such as Dennis Spina, CEO of Reality Networks (OTCBB:RWNT), know the real opportunity for fixed wireless broadband lies in serving the tens of millions of potential customers in those parts of the country that DSL can't reach and cable won't because of the expense and infrastructure requirements.
"Virtually everyone would like to have some form of broadband service that they can afford," says Spina, who joined Reality Networks in August of 2002 after being President of Internet Services at RCN Corporation, which he joined as part of the acquisition of Erols, the largest regional Internet Service Provider, based in Springfield, Virginia-based, where he was CEO. In 1973, Spina helped launch Federal Express, becoming Regional Vice President in the Northeast, responsible for the company's primary revenue centers.
"AOL's subscriber base is actually dropping for the first time, losing customers who want affordable broadband. But the problem is that no matter what provider you go with, DSL is only available within 13,000 feet -- less than 3 miles -- of the local phone company's central switch and cable requires neighborhoods to be cabled. There are urban areas with DSL and cable in the US that now have quotas, over which they must reject customers until the providers can upgrade. We see lots of "green fields" across the country for whom Fixed Wireless is going to be the only way they can economically get broadband. The challenge won't be technology per se; it will be delivering a desired service and satisfying customers."
Reality Networks has developed a roll-out plan focusing on those areas where DSL can't reach and cable won't go. Spina advises anyone looking for a model of how Fixed Wireless will evolve to take a backward glance at how the cable industry grew in the early days. Demographics and population density are two key variables. The lynchpin of Reality Network's roll-out plan is execution, holding down overhead and acquiring customers cost-effectively through local marketing.
"Everybody thinks of cable these days as a handful of huge providers, but in the good old days, cable companies were actually mom and pop operations that could serve specific locales, based on the numbers of 'homes passed' by the cable. Over time, companies got bigger through merger and acquisition until we arrived at the situation we have today," said Spina. "Fixed Wireless will grow similarly.
"We've already proven that 'Reality in a Box' works in high-density, unserved pockets of Silicon Valley, where you would think everyone would have access to broadband. We have a couple more targets in northern California where we want to validate our model, and then we start plowing those green fields, as we call them, where DSL can't go and cable won't."
About Reality Wireless Networks (http://www.realitynetworks.com): Delivers fixed wireless, 802.11, and fiber to markets either underserved or not served by DSL and cable modem technologies. Currently operational in California, the company has targeted markets including residential, SOHO, and multi-unit apartment complexes across the country. For more information, please contact: ir@realitynetworks.com.
NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain statements in this press release constitute forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Reality Wireless Networks, Inc. (collectively, referred to as ``Reality,'' ``we,'' ``us,'' ``our,'' and/or the ``company''), or developments in the company's industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: the company's limited operating history, lengthy sales cycles, the company's dependence upon a relative concentration of customers, competition, product development risks and risks of technological change, dependence on selected vertical markets and third-party relationships and suppliers, and other risks and uncertainties.