NBCi's Snap and Telocity have begun developing a co-branded nationwide service to offer users high-speed Internet access and multimedia content and services, launching in early 2000. The agreement is backed by a $70.5 million joint investment in Telocity by NBCi, NBC, GE Equity, and ValueVision International, Inc.

Telocity's technology eliminates one of the major obstacles to the roll-out of broadband access across the country by providing a plug-and-play national broadband service that can be self-installed by customers. In most cases, Telocity's service does not require a technician to make a site visit to install additional telephone or computer equipment.

The agreements extend NBCi and NBC's involvement in the convergence of television and the Internet, the broadband arena and in the development of new technologies -- and the deals mark the first time an Internet access service will be backed by the NBC brand.

NBCi (NBCI), NBC, GE Equity and ValueVision will invest a combined $70.5 million in cash, television promotion and online marketing in exchange for a 19.5 percent stake in Telocity. Telocity will receive $37.5 million in cash and $33 million in NBCi and NBC television and online promotion.

The service will feature entertainment, shopping, games, communications applications, search and community services and other utility services designed specifically for broadband -- spotlighting video, audio and other media rich content. The Snap/Telocity service will be backed by a national advertising campaign on the NBC Television Network and will be promoted regionally on NBC-owned TV stations and in other media. NBCi and Telocity will share subscription, sponsorship, advertising and electronic commerce revenues generated by the new service.

"We are thrilled about our new relationship with NBCi in which we will be able to provide our Telocity customers with the latest, most content-rich connection to the Internet. Now, as our customers experience the Net in "Telocity Time," the media-rich content of NBCi will come into their lives at an incredible, High Velocity Speed," said Patti Hart, Telocity president and chief executive officer.

"NBCi has already seized the lead among Internet portals by building a distinct portal designed for higher-speed users. Now, working with Telocity and building on their easy to install, high-quality, broadband service, we're moving well ahead of the rest of the market. We'll use this unique platform in defining the next generation consumer Internet experience," said Edmond Sanctis, NBCi's president and chief operating officer.

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