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ATLANTA, Dec. 20, 2004 (BUSINESS WIRE) -- Fonix Telecom, a subsidiary of Fonix Corp. that offers next-generation integrated communications services, will be partnering through its subsidiary LecStar Telecom Inc. with Duke Power to test Broadband over Power Line (BPL) technology and market acceptance in a 10,000- to 15,000-home trial. This trial, which will take place in Duke Power's service area in North Carolina and South Carolina, represents an expansion of a 500-home trial currently being conducted by the companies. The trial's specific locations will be determined in the first quarter of 2005.
Fonix Telecom's BPL service, offered through LecStar, allows users to turn any electrical outlet in their home into a gateway to the Internet, simply by plugging in their computer and BPL modem. The company expects the service will be available for businesses and consumers by mid-2005 in select markets.
"Customers are hungry for fast, flexible, cost-effective methods of receiving their voice, data and media," said W. Dale Smith, senior VP and general manager, Fonix Telecom. "This technology delivers on the promise of ubiquitous high-speed Internet and voice services."
"By partnering with Duke Power on this trial," said Michael Britt, VP of Channel Development and BPL project manager, Fonix Telecom. "We get the benefit of Duke's expertise and reputation for quality and leadership in the utility industry, as well as their established customer relationships. Finally, it provides our customers the freedom to choose a plan that meets their needs better than DSL or cable systems."
"The business model we are pursuing is essentially the creation of a wholesale 'pipe' that can be used by service providers, such as Fonix Telecom and others, to provide consumers with another broadband option for their homes and businesses," said Bob Gerardi, Powerline Communications program manager, Duke Power. "We chose Fonix Telecom's subsidiary LecStar to participate in the trial and help bring this exciting technology to market because of their commitment to this technology, their ability to move quickly and their long history of successful collaboration with the utility industry."
As part of the BPL trials, Fonix is continuing to test its Voice over Internet Protocol (VoIP) via BPL product, an innovative technology that will allow the company to offer voice transmissions over power lines in addition to data and media. This service will be tested by current trial participants and is expected to become available to all customers in the next phase of the trial by mid-2005. Fonix announced tests of this technology earlier this year, making it one of the first companies in the United States to successfully implement the technology.
About Duke Power [ www.dukepower.com ]
Duke Power, a business unit of Duke Energy, is one of the nation's largest electric utilities and provides safe, reliable, competitively priced electricity and value-added products and services to more than 2 million customers in North Carolina and South Carolina. In 2004, Duke Power celebrates 100 years of service. The company operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system generating capability is approximately 19,900 megawatts.
About Duke Energy [ www.duke-energy.com ]
Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in North America and selected international markets. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
About Fonix Telecom Inc.
Fonix Telecom Inc. is a wholly owned subsidiary of Fonix Corp. that offers residential and business customers integrated communications services including wireline and Voice over Internet Protocol (VoIP). Fonix Telecom's operating subsidiary, LecStar Telecom, is based in Atlanta.
About Fonix [ www.fonix.com ]
Based in Salt Lake City, Fonix Corp. is an innovative communications and technology company that provides integrated telecommunications services and value-added speech technologies through Fonix Telecom Inc. and The Fonix Speech Group. The combination of interactive speech technology and integrated telecommunications services allows Fonix to provide customers with comprehensive cost-effective solutions to enhance and expand their communications needs.
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