2455 Horse Pen Road, Suite 220
Herndon, VA 20171
Chris K. Walczak, President
Line or Service ConnectUSA is building a managed network of
second-generation Internet TV set-top devices, linked to a TV-optimized
online service, the 8 million households in rural America that WebTv and
AOL didnt reach. We are partnering with 100s of telephone companies
and Internet Service Providers for local connectivity, content, and
customer support, and providing them with an Internet service they can not
build or run individually. We aggregate a valuable network of rural
telephone companies and ISPs into a national service reaching 10s of
millions of homes.
We earn revenue from three sources. Our local ISP partners
pay an initial license fee for the ConnectUSA service. In addition, we
recover monthly subscriber service fees, plus advertising and e-commerce
opportunities from running our online service. Serving local communities
and aggregating millions of homes into a national network presents
business opportunity for ConnectUSA and our partners and our investors.
Rights ConnectUSA builds and maintains a central server network for
managing a network of set-top devices. The ConnectUSA hub site is
optimized for viewing with TV, similar to WebTv, and co-branded
with the locla service provider. We use industry-leading software
technology licensed from Network Computer Inc. that fully integrates
Internet access with TV programming to create a superior enhanced TV
service compatible with both dial-up and high-speed networks.
Opportunities WebTv is currently the dominant provider of enhanced
Internet TV with over 700,000 homes with 1.54 milion subscribers in their
network. However, WebTv is not locally accessible in over 8% of U.S.
households and users in these unserved areas pay a $15 a month premium
over regular Internet TV service for these 8 million inserved homes.
ConnectUSA will be the primary Internet TV service for the 8 million
and Distribution The
target market is rural utility companies who are also Internet Service
providers (RISP) in areas unserved by WebTv and the other national
networks. Telephone companies are the most desirable partners because they
control local access lines needed for dial-up connections to the Internet.
Rural electric cooperatives (REC) are the second most desirable partner
primarily because they have a commitment to serving their communities as a
utility, and level the expense of running an ISP with their core
activities serving local customers. Lastly, wherever there is the lack of
an RISP the focus the focus will be on other ISPs that are non-utility
ConnectUsa does not manufacturer products. We act as a master
distributor for set-top boxes to our ISP partners. Set-top boxes are
available from several manufacturers licensed to build equipment for
Network Computer Systems, Inc.