News

IVI Targets Larger Ops

8/30/1998 8:00 PM Eastern

Los Angeles -- Internet Ventures Inc. shifted its turnkey
high-speed-data strategy last week, saying that it will focus on system clusters with
15,000 or more homes, instead of its original plan to service very small operators.

In conjunction with the new focus, IVI terminated its
agreement with Sun Country Cable to provide data services in its 1,000-subscriber
Groveland, Calif., system.

Don Janke, president of IVI, said in a prepared statement
that the evolution of the high-speed Internet segment will include each provider finding
workable niches and, as part of IVI's recently announced $29.95-per-month pricing
model, it will pursue larger subscriber clusters.

"That business model is based in part on our ability
to reach a larger number of subscribers in a given region than we originally
planned," Janke said.

David Kinley, president of Sun Country, was unavailable to
comment on the aborted arrangement at press time, but Janke said Kinley "has been a
supporter since the company's earliest days ... We're grateful to him for his
understanding to mirror, in a smaller way, the same cluster strategy that has worked so
well for the cable industry."

IVI launched the new pricing plan in Humboldt County,
Calif., with its Northcoast Internet affiliate and Cox Communications Inc. Since then,
subscribership swelled over a three-week period, from 50 to more than 125. The revised
pricing structure will be launched Sept. 1 in Ventura, Calif.

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