David and Goliath? SNET rolls out cable service in TCI's shadow >BY SHIRA LEVINE, New Media Editor

Southern New England Telecommunications debuted its cable TV service in Unionville, Conn., last week-the telco's first step in its master plan to deliver video to the entire state-even as cable giant Tele-Communications Inc. pulls out all the stops elsewhere with a 180-channel digital offering, cable telephony and high-speed Internet access.

But SNET refused to let TCI's shadow ruin the high-profile rollout of its SNET Americast service, which the telco will deliver over its I-SNET statewide hybrid fiber/coax network.

"[TCI's] digital offering has a much higher channel capacity, but it's also a much higher-priced service," said Patrice Listfield, president of SNET Americast. "There will be people who desire that service right now, just as there are people who want [direct broadcast satellite service] right now, but we're expecting that digital rollout will be slow, so we'll be competitive for a long time.

TCI's ALLTV digital cable service, along with its PeopleLink telephony service and @Home cable modem service, are currently available only in its seven-town Hartford franchise area. But a company spokesman said the service will soon be expanded into its New Britain franchise region, where Unionville is located.

The SNET Americast service features 80 channels, including some not available on TCI's New Britain system, and it is priced competitively against TCI's service. SNET decided not to undercut TCI on price, opting instead to position itself as a high-value service instead of an inexpensive one, said Daniel Miglio, chairman and chief executive officer of SNET.

"We believe in delivering the right service at the right price," Miglio said. "Our research shows that customers are drawn to value, particularly as the amount of content that is available out there increases.

Despite TCI hovering in the background, SNET has chosen to hold off on digital cable and cable modem service even though its network is capable of supporting advanced services, Listfield said.

"This is not the right time for us," she said. "We're looking at [these services], but our goal is not to set expectations until we can deliver them.

In addition, the design of the SNET network-only 200 homes per node-ensures a signal quality far superior to that of most analog networks, Listfield said.

TCI BRINGS SCHOOLS ON-LINE TCI's Internet services division, TCI.NET, has donated its @School cable modem service to four Fremont, Calif., schools. The service includes a cable modem, a customized browser, academically focused programming and Internet training for teachers. PHILIPS HEADS DOWN UNDER Australian carrier Telstra has chosen Philips Broadband Networks as the primary supplier for the second construction phase of its two-way nationwide hybrid fiber/coax network. Philips will supply a complete end-to-end package, including RF and fiber optics, element management systems and headends. DIVICOM LENDS A HAND TO U S WEST DiviCom has signed an agreement with U S West Communications, helping the telco evaluate future digital video distribution systems through its DiviSys systems integration unit. U S West is planning to test a switched digital video fiber-to-the-curb network in Scottsdale, Ariz., later this year.