Exhibit 99.1
[LOGO OF CORECOMM LIMITED]
FOR IMMEDIATE RELEASE
CORECOMM LIMITED ANNOUNCES NEW BROADBAND STRATEGY
ADVANCED FIBER TO THE HOME NETWORK
TARGETS COST-EFFICIENT BUILD AREAS WITHIN CORECOMM MARKETS
EXTENSION OF CURRENT SMART BUILD STRATEGY
New York, New York (May 31, 2000) - CoreComm Limited (NASDAQ: COMM) announced
today the formation of a new subsidiary to take the power of fiber optic
networks directly to the home. The new unit, tentatively named CoreComm
FiberCo., will initially concentrate on bringing fiber directly to multiple
dwelling units (MDUs) located in CoreComm's service areas.
Barclay Knapp, Chief Executive Officer of CoreComm, stated, "CoreComm has
developed a substantial telecoms presence in our service territories areas using
our 'Smart Build' telephone and data strategy. By rapidly installing a very
efficient telephone, Internet, and high-speed data network and leasing the 'last
mile' from the local carrier, we have pioneered the sale of bundled telephone
and Internet services to the residential marketplace. It is now time to take
this strategy to the next level.
"By constructing a 'killer app' network of our own in the last mile - fiber to
the home - we can leapfrog all existing technologies for telephone and data
services to the consumer, and prepare the way for exciting new video services in
the future. Neither cable modems nor DSL would be able to match the capability
and flexibility of a multi-megabit fiber network. We also achieve instant market
presence, economies and synergies through our in-place local network and our
nationwide ATM network.
"We are proud that CoreComm is uniquely positioned to be the first to make the
dream of fiber to the home in the U.S. a reality."
CoreComm has installed its "Smart Build" networks in Chicago, Cleveland, and
Columbus, and will be initiating service in Detroit, New York, and Boston in the
next several months. In March 2000, the Company announced agreements to acquire
ATX Telecommunications, Inc. and Voyager.net, Inc. ATX has a "Smart Build"
network in Philadelphia and expansions underway in Washington, D.C. and
Baltimore. Voyager.net is one of the leading Internet service providers in the
midwest, with approximately 360,000 customers in the Great Lakes region
overlapping CoreComm's territory. These transactions are expected to close in
July, and integration plans are already underway.
CoreComm FiberCo. will thus start with near-term access to the largest markets
in the east and midwest for telephone and high-speed data, and a built-in
Internet content and delivery infrastructure with Voyager.net.
Corning Incorporated has worked with CoreComm since 1998 to make this project a
reality, playing a major role in developing and designing the network
architecture and identifying significant cost savings and performance
improvements through the use of various new optical technologies. Corning will
provide optical fiber cable, hardware, and will assist in the financing
associated with the project.
INITIAL PRODUCT OFFERINGS
CoreComm FiberCo.'s fiber-to-the-home (FTTH) offering will include local and
long distance telephone bundled with 10 megabit per second Ethernet access and a
full Internet service at a very attractive price point. The bundled price will
be roughly equivalent to that which a consumer would pay today for telephone and
DSL or cable modem service from separate vendors, but offer access speeds six to
twenty times faster - and approximately 200 times faster than dial-up. As a
widespread standard, Ethernet is easier to install, more reliable and more
customer friendly than either DSL or cable modems. In addition, Ethernet is more
compatible for home working and telecommuting applications because of its use in
corporate networks, and most PC's today come equipped with an Ethernet
interface, or can be easily and cheaply upgraded.
<PAGE>
TARGET SEGMENTS
CoreComm FiberCo. will initially target residential multiple dwelling units and
work together with landlords to construct facilities and deliver services.
MDU's, whether "high-rise" or "campus style", offer attractive density for
cost-effective delivery of fiber-optics to the home. MDU's can later be used as
nodes in an expanded fiber-optic network covering single-family homes as well.
CoreComm's target markets in the midwest offer substantial opportunity in the
"campus" segment, while the east brings the "high-rise" component.
LONGER TERM
CoreComm is forming the FiberCo. unit as a separate subsidiary in order to
create focus and to facilitate financing. Future developments could include the
delivery of multichannel television and advanced video services such as
video-on-demand, streaming video, video-mail, and television/Internet
integration. In addition, the network architecture will be designed to allow for
an increase in data speeds to 100 megabits, or more, per second.
CORECOMM LIMITED
CoreComm is an innovative communications company that provides integrated
telephone, Internet and data services to business and residential customers in
targeted markets throughout the United States. We are exploiting the convergence
of telecommunications and information services through a strategy which allows
us to deliver a wide range of communications services over a network
architecture that we design to be capital efficient and primarily requires
success-based incremental capital. Our goal is to expand our facilities,
geography and services to become a leading switch-based communications provider
in selected major markets across the United States.
CORNING INCORPORATED
Established in 1851, Corning Incorporated (www.corning.com) creates leading-edge
technologies for the fastest-growing markets of the world's economy. Corning
manufactures optical fiber, cable and photonic products for the
telecommunications industry; and high-performance displays and components for
television and other communications-related industries. The company also uses
advanced materials to manufacture products for scientific, semiconductor and
environmental markets. Corning's revenues in 1999 were $4.7 billion. For more
information about Corning optical fiber, visit www.corningfiber.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: In addition to the historical information presented, this release also
includes certain forward-looking statements concerning the future development of
the business and the anticipated closing date for the transaction. Such
statements represent the Company's reasonable judgment on the future and are
based on assumptions and factors that could cause actual results to differ
materially. The Company assumes no obligation to update these forward-looking
statements to reflect actual results, changes in assumptions or changes in
factors affecting such statements.
* * * * * *
For further information contact: Michael A. Peterson, Vice President - Corporate
Development or Richard J. Lubasch, Senior Vice President - General Counsel at
(212) 906-8485.
