|
August 10, 2000 |
| Press Release (For Immediate Release) ACCA Networks, Co., LTD. |
|
ACCA Networks to deliver broadband local access with support of
|
| Tokyo - August 10, 2000 - Japanese communications company, ACCA Networks, Co. Ltd., (Headquarters: Chiyoda-ku, Tokyo, CEO: Hidehiko Yuzaki, “ACCA”), US-based Covad Communications (NASDAQ: COVD)(Headquarters: California, CEO: Robert E. Knowling Jr., “Covad”), NTT Communications Corporation (Headquarters: Chiyoda-ku, Tokyo, President and CEO: Masanobu Suzuki, “NTT Com”) and Japan-based venture capital firm Ignite Japan KK (Headquarters: Chiyoda-ku, Tokyo, CEO: Nobuo Mii, “IGNITE”) announced today that the four companies have signed a formal agreement to provide local broadband network services using DSL (Digital Subscriber Line) to major metropolitan areas in Japan. Under the agreement, NTT Com will acquire a 41.8 percent stake in ACCA. Covad, through its subsidiary Covad Communications Investment Corp., will also acquire a 41.8 percent stake in ACCA. IGNITE, through its affiliated IT 2000 fund, will acquire a 6.7 percent stake. The remaining 9.7 percent will be held by the five founders of ACCA. ACCA will issue additional stock options for its employees. Under the agreement, NTT Com and Covad will each invest 1.25 billion yen (approximately 11.5 million USD), and Ignite will invest a total of 170 million yen (1.6 million USD). ACCA, a broadband access network provider founded in March of this year, was registered as a Type II telecommunications carrier in April. ACCA will launch pilot DSL services this fall in selected areas in Tokyo and will expand to a commercial nationwide service starting early 2001. ACCA plans to evaluate offering access services utilizing other technologies as well in the future. As a wholesaler, ACCA will provide its DSL services to business users as well as residential users primarily through Internet Service Providers (ISPs) and telecommunications carriers. ACCA expects that ISPs and telecommunications carriers will bundle their Internet backbone and other network services with ACCA's access services to provide packaged broadband services under the operators’ brand to end users. Under the agreement, NTT Com, through its OCN and other brands, plans to use ACCA's DSL lines to meet increasing customer demand for faster Internet access and other wide bandwidth applications. Covad will assist ACCA in the deployment of its broadband DSL network by leveraging its experience in large-scale DSL network operations. Covad will also offer ACCA exclusive rights in Japan of its proven, scalable Operational Support System (OSS). The OSS will allow ACCA’s sales partners and their end users to automate and streamline the ordering and provisioning process. IGNITE has provided ACCA with hands-on support for the growth of the company since its establishment and will continue to support ACCA's growth strategy financially and operationally. The synergy created by a dynamic startup team, Japan’s premier brand name and customer base, USA’s number one broadband DSL services supplier, and the financial backing of a leading venture company, should launch this alliance into a leadership position in the Japanese Internet market. "The lack of competitive broadband access solutions has been bottlenecking Japan’s IT explosion. This alliance is a dream team offering such a solution which will also bring socioeconomic changes in this country, " said Hidehiko Yuzaki, a founder and CEO of ACCA Networks. Masanobu Suzuki, President and CEO of NTT Communications, said, “ ACCA Networks will be an important vehicle for NTT Communications’ continued expansion into high quality broadband services. NTT Com will continue to strengthen its commitment towards up-to-date customer needs and establish a end-end information distribution value chain by expanding its high-speed access capabilities. We also expect that the partnering with Covad Communications, which has been successful in the U.S. market with its entrepreneurship, would bring great advantage to business in the competitive and fast-moving Japanese market.” “We have always known that Japan was an important market for Covad and deployment of broadband services, and we feel we have found the best combination in NTT Com, ACCA, and Ignite. We are confident this team can provide excellent services and value to our customers, in addition to providing all companies involved with a sound business opportunity,” said Robert Davenport, CEO of Covad International. Nobuo Mii, Managing Partner, Ignite Group, said, “The synergy of combining the expertise and brand name of leading companies with the energy and nimbleness of a dynamic startup is a success formula for creating high-growth companies in the Japanese venture market. The ACCA partnership is a good example of using such a success formula. Ignite is proud to be part of this promising team.” • Reference |
 For more information, please contact. |
|