ÿWPC–  §oÄÿg(—Ü$FèRÑgS¦@N=³>eê¿°(  §<¤n ¹Ôí¿ÙëÎFĈ—Ò ÷åkêðwéÙe˜JS7|9^5°7ŠêINwt+?5ÛÀ2ÓïO,ÉãLj‡ F s6I1ùeU;Іïî¡{mH%pã“„$À“̈Ϧ²$¢kÔƒ&eò^h-å­#>¥N~ÒÄ«á»n~qi´àÕ„o÷ó#ÝDJ#@pwHf+Êp«y+@wÓ"ùD# ¸U=Nà % 0(w@?4“ B*¢ Ì4â  0D!ULeE±³³»%ÑÑ ööööööööööööö B         0D                 ASb Ƶ 0D{ 0D¿ ¿ D/ B2 B*O By ˜HP LaserJet 4/4MHPPCL5E,,,,0 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ CDDEUFEGHEIJKMrz˜;$(a)i3|xN&ÿÿ0 d dv#DocTrlr *Ý ƒ=¯"ÝÝ  Ýòò5025478.1óó Ì(3¯$©©Ý ƒ!ÝÝ  Ý5b­‡ ‹4Bookman Old Style Bold Ñ ° Ñ Ý ƒ=¯"ÝÝ  Ý Ì d(3¯$££Ý ƒ!ÝÝ  Ý<=*>Cþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5(3¯$¢¢Ý ƒ!ÝÝ  Ý($$””ò òÚ  Ú1Ú  Úó óAA'÷ÿ dxdüÿP Pd&õÿP d döÿ  dÝ ƒ!ÝÝ  Ýò òñMñÖ€ ÿÿÖñMññMñÖ€ÿÿÖñMñÑ  Ñԇ⩓âXXÔRCN€Corporationó óÔ#†X} Xââ©“i#ÔÐ ° ÐÌÔ‡ô¬WôXX} ÔCorporate€ProfileÔ#†X} Xôô¬WÓ#ÔÐ ”ä ÐÌò òÔ€&åÕ&XX} ÔÔ‡X} X&&åÕÔCOMPANY€OVERVIEWó óÔ#†&åÕ&XX} ^#ÔÐ L œ ÐÌRCN€Corporation€(Nasdaq:€RCNC)€headquartered€in€Princeton,€New€Jersey,€provides€bundled€local€andÏlong€distance€telephone€services,€video€programming€and€Internet€access€to€residential€consumers€inÏNew€York€City,€Boston,€Washington,€D.C.€and€the€Lehigh€Valley€region€of€Pennsylvania€over€anÏadvanced€fiber€optic€network.€€RCN€is€targeting€the€residential€market€in€the€Boston„Washington,€D.C.Ïcorridor.ÌÌò òÔ‡X} X&&åÕÔRESIDENTIAL€MARKET€FOCUSó óÔ#†&åÕ&XX} `#ÔÐ 2‚  ÐÓ*°,X‚X4¸ —X°œX*ÓÌÓ<°,X°‘4¸ —X°,X‚X4¸ —X<Óððà ‘ àRCN€is€the€only€residentially€focused€competitive€local€exchange€carrier€(CLEC)€in€the€industry.Ð üL  Ðððà0 ‘ àRCN€is€the€only€CLEC€with€a€comprehensive€bundled€services€offering€that€includes€video.ÐÖ&‘(#‘(# Ðððà0 ‘ àRCN€is€the€first€residential€CLEC€to€challenge€the€incumbents€in€New€York€City,€Boston,Ð ° ÐWashington,€D.C.€and€the€Lehigh€Valley.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔTARGET€MARKETSó óÔ#†&åÕ&XX} #ÔÐ >Ž ÐÌððà0 ‘ àThe€first€and€largest€competitive€facilities„based€residential€CLEC,€RCN€is€operating€in€major€citiesÐ X Ðin€the€Northeast€where€customer€service€is€the€poorest€and€rates€are€the€highest.Ð ‘(#‘(# Ðððà0 ‘ àRCN€has€targeted€the€densely€populated€Northeast€corridor€representing€approximately€28%€of€theÐ ¼  Ðnationððs€telecommunications€usage€but€only€4%€of€its€geography.Ð ‘(#‘(# Ðððà0 ‘ àRCNððs€target€market€is€nine€million€homes€along€the€Boston„Washington,€D.C.€corridor.€€Each€homeÐ pÀ Ðhas€three€possible€connections€(phone,€cable,€Internet)€which€equals€27€million€potential€connections.€ÏRCN€can€efficiently€and€economically€build€networks€on€a€scaleable,€success„based€formula€to€meetÏdemand.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔNETWORKó óÔ#†&åÕ&XX} ¯ #ÔÐ ² ÐÌððà0 ‘ àRCN€owns€and/or€controls€an€extensive€fiber€optic€network€in€New€York€City,€Boston,€Washington,Ð |!Ì  ÐD.C.€and€the€Lehigh€Valley.Ð ‘(#‘(# Ðððà0 ‘ àBy€controlling€the€network,€including€its€own€telephone€switches,€RCN€controls€the€customerÐ 0#€" Ðrelationship€and€is€able€to€offer€superior€customer€service€and€pricing€with€ample€capacity€to€meet€theÏgrowing€demand€for€two„way€transmission€required€for€data€and€Internet€communication€delivery.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔSTRATEGIC€ALLIANCESó óÔ#†&åÕ&XX} ( #ÔÐ ˜&è!& ÐÌððà0 ‘ àRCN€entered€into€a€joint€venture€with€a€subsidiary€of€Potomac€Electric€Power€Company€(PEPCO)€toÐ b(²#( Ðprovide€comprehensive€telecom€services€to€PEPCOððs€682,000€customers€in€Washington,€D.C.€andÏportions€of€Maryland€and€Northern€Virginia.Ð ‘(#‘(# Ðððà0 ‘ àRCN€and€Boston€Edison€joined€forces€to€deliver€ð ðbundledðð€telecom€services€to€Boston€EdisonððsÐ ð*@&+ Ð650,000€customers€in€47€communities.€€This€was€the€first€major€alliance€formed€between€a€utility€andÏa€telecommunications€company€to€deliver€a€comprehensive€package€of€services.Ð #¤,ô'-‘(#‘(#ß #ÐÑH°ÑÑ€OaÑÌððà0 ‘ àRCN€has€a€long€term€lease€arrangement€with€MFS/WorldCom€to€utilize€its€extensive€fiber€opticÐ ŠÚ Ðnetwork€in€New€York€City€and€Boston,€and€has€access€to€Boston€Edisonððs€200€miles€of€fiber€inÏBoston€and€surrounding€communities.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔMANAGEMENT€EXPERTISEó óÔ#†&åÕ&XX} X#ÔÐ òB ÐÌððà0 ‘ àRCN€has€an€experienced€and€entrepreneurial€management€team€and€Board€members€who€are€uniquelyÐ ¼  Ðqualified€to€execute€the€companyððs€business€plan.€€In€addition,€each€member€of€the€management€teamÏhas€extensive€telecommunications,€high„technology€and€fiscal€experience.Ð ‘(#‘(# Ðððà0 ‘ àPeter€Kiewit€Sonsðð€Inc.,€which€founded€and€developed€the€successful€MFS€business€that€was€laterÐ J š  Ðsold€to€WorldCom,€holds€a€significant€interest€in€RCN.€€€James€Crowe,€former€Chairman€and€CEO€ofÏMFS€is€a€member€of€the€RCN€Board€and€is€President€of€Kiewitððs€Diversified€Group.Ð ‘(#‘(# Ðððà0 ‘ àDavid€C.€McCourt,€Chairman€and€CEO€of€RCN€Corporation,€has€extensive€telecom€network€buildingÐ Ø(  Ðexperience€having€built€the€MFS€fiber€network€in€Boston.€€McCourt€also€built€hybrid€fiber€coaxÏnetworks€in€the€UK,€in€partnership€with€Kiewit,€for€many€of€the€largest€and€well„known€companies€inÏthe€telecom€industry.Ð ‘(#‘(# Ðððà0 ‘ àMichael€J.€Mahoney,€President€and€Chief€Operating€Officer€of€RCN€Corporation,€joined€the€companyÐ @ Ðin€1991€as€Executive€Vice€President€of€the€cable€division€before€being€appointed€to€his€currentÏposition€in€1994.Ð ‘(#‘(# Ðððà0 ‘ àBruce€Godfrey€joined€RCN€as€Executive€Vice€President€and€Chief€Financial€Officer€in€1994.€€HeÐ Î Ðpreviously€spent€14€years€with€Daniels€&€Associates€specializing€in€cable€television,€entertainmentÏand€mobile€communications€industries.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔSALES€AND€MARKETING€EXPERTISEó óÔ#†&åÕ&XX} #ÔÐ 6† ÐÌððà0 ‘ àRCN€has€a€centralized€customers€service€facility€open€24€hours€a€day,€seven€days€per€week,€andÐ P Ðrecently€launched€a€successful€advertising€campaign€to€create€awareness€and€to€generate€sales€in€NewÏYork€City,€Boston€and€the€Lehigh€Valley€area€of€Pennsylvania.Ð ‘(#‘(# ÐÌò òÔ‡X} X&&åÕÔCONTACT€INFORMATIONó óÔ#†&åÕ&XX} ¼#ÔÐ h¸ ÐÌValerie€HaertelÌDirector,€Investor€RelationsÌÌPhone:à  à609„734„3816Ð À"# ÐFax:à  à609„951„8632Ð š#ê$ ÐE„mail:à 4 àvhaertel@rcn.netÐ t$Ä% ÐÌRCN€CorporationÌ105€Carnegie€CenterÌPrinceton,€NJ€€€08540ÌÌ(more)ÌÔ‡X} X&&åÕÔà@ÝÝìàVisit€the€RCN€WebSite€atˆÐ j*º%, Ðà@¡¡%ìàò òwww.rcn.comó óÔ#†&åÕ&XX} 7#ԈРZ+ª&- ÐÔ% € ÔñKñßk€; 5%!h p  `€€E°-xx°-xkßñKññKññKññKñÑOaÑÑ°HÑÑ  ÑñKñò òÓ  ÓñKñßk€;5%!h p ™ýáÿ `€€EI‘,xðxðI‘,xðkßâ Á (#Á (#°(#°(#âñKñNEñKñÑOaÑÑ°HÑÑ  ÑÑOaÑÑ°HÑÑ  ÑñKñWSÐJ,š'.Á (#Á (# ÐÑOaÑÑ°HÑÑ  ÑñKñÑOaÑÑ°HÑÑ  ÑÑOaÑÑ°HÑÑ  ÑñKññMñÑOaÑÑ°HÑÑ  ÑÑOaÑÑ°HÑÑ  ÑñMññKñÑOaÑÑ°HÑÑ  ÑÑOaÑÑ°HÑÑ  ÑÑOaÑÑ°HÑÑ  ÑñKñARTICLES€ABOUT€RCNððS€ACTIVITIESó óÐ ° ÐñKñÑOaÑÑ ° ÑÑ  ÑÑOaÑÑ ° ÑÑ  ÑñKñÓ´ÓÌò òÔ‡X} X&&åÕÔà@n n $ìàÔ‡ Xúø XXX} ÔÔ#† &‰' & X XúøÛ#ÔÔ‡ âQ â & &‰'ÔBOSTON€HERALDÔ#†â©“â â âQ #Ôó óÔ#†&åÕ&ââ©“N#ÔÔ‡X} X&&åÕԈРd´ ÐÌßA€C) °°xdFE°= xAßÐ > Ž ÐÌà@##ìàThursday,€July€31,€1997ˆÌßA€!) °°xd 9E°< xAßÐ =  ÐÌà@**!ìàÔ#†&åÕ&XX} Ã#ÔÔ‡èù è&&åÕÔò òCablevision€vs.€RCNó óÔ#†&åÕ& èèù!#ÔÔ‡X} X&&åÕԈР< Œ  ÐÌà@¦ ¦ ìàÔ#†&åÕ&XX} b!#ÔÔ‡¼uö¼&&åÕÔCould€revolution€spark€price€war?Ô#†&åÕ&¼¼uöÍ!#ÔÔ‡X} X&&åÕԈРº  ÐÌà@ññ!ìà€By€MONICA€COLLINSˆÌÌÌÓ  Óà ‘ àCablevision,€a€pinko,€stinko€communist?€No€way.€Boston's€cable€company€is€a€capitalist€tool€outÏto€wrench€every€penny€from€your€pocket.€€Yet€in€a€new€advertising€cam‚paign.€Cablevision€rivalÏRCN€depicts€the€cable€company€as€the€Evil€Empire€that€needs€to€be€crushed€by€the€little€people€„Ïcable€TV€customers,€presumably.€€€Beleagured€Boston€subscribers€„who€can€pay€up€to€$80€a€monthÏfor€TV€service€„€do€not€want€this€revo‚lution€to€begin€without€them.ÌÌà ‘ àBut€RCN€itself€could€turn€out€to€be€just€another€bolt€in€the€Info„Age€Iron€Curtain.€€A€division€ofÏthe€C„Tec€Corp.€in€Princeton,€N.J.,€RCN€hopes€for€a€piece€of€Cablevision's€business€and€claims€itÏis€very€serious€in€its€pur‚suit.€ÌÌ€à ‘ àEarlier€this€summer,€city€attor‚neys€granted€RCN€a€preliminary€license€to€sell€its€fiber„optic€serƒÐ ð@ Ðvices€in€Boston.€Those€services€include€phone,€TV€and€Internet€access.€This€fall,€the€city€is€expect‚edÏto€give€RCN€full€permission€to€operate,€which€means€the€company€will€have€to€work€under€the€sameÏguidelines€as€Cablevision.€Until€then,€RCN€is€selling€an€image€„€the€image€of€Cablevision€as€fascistÏdic‚tator.€In€current€full„page€newspa‚per€ads€and€MBTA€bus€billboards€RCN€is€appealing€to€customerÏdis‚satisfaction€with€the€Cablevision€monopoly€The€style€of€the€RCN€strategy€suggests€a€low„rentÏver‚sion€of€the€Apple€personal€comput‚er€campaign€of€years€back,€when€Apple€tried€to€smash€the€IBMÏmonolith€with€its€famed€"1984"€commercial.ÌÌà ‘ à"No€Empire€Lasts€Forever"€trumpets€the€RCN€message,€super‚imposed€over€a€photograph€of€aÏstatue€of€U.S.S.R.€founding€father€Vladimir€Lenin.€The€familiar€stone€visage€has€a€noose€around€itsÏneck.€And€there's€this€kicky€rejoinder€to€the€empire€line:€"Especially€one€that€keeps€you€waiting€5Ïhours€for€a€repairman."ÌÌà ‘ àTighten€that€noose.ÌÐ +P&) Ðà ‘ àIn€the€text€of€the€message,€RCN€then€promises€to€offer€better€rates€for€phone€and€cable€serviceÏthan€Nynex€or€"your€local€cable€compa‚ny."ÌÌà ‘ àIn€another€ad,€there's€a€photo€of€a€crowd€laying€siege€to€the€Berlin€Wall.€"Sooner€or€later,€allÏtyrannies€crumble,"€says€the€RCN€ad€copy.€ð ðThose€with€excessive€monthly€rates€tend€to€crumbleÏsooner."ÌÌà ‘ àAnd€the€fine€print:€It's€no€small€irony€that,€in€a€city€at€the€center€of€the€free€world,€local€phone€andÏcable€customers€wrestle€daily€with€the€frustrations€of€one„company€rule."ÌÌà ‘ àDaily€frustrations,€not€really€„€only€when€it's€time€to€pay€the€cable€bill.ÌÌà ‘ àIn€preparing€for€its€own€battle€with€RCN,€Cablevision€seeks€rate€relief.€Herald€business€reporterÏTony€Munroe€broke€the€story€this€week€that€Cablevision€will€ask€the€Federal€CommunicationsÏCommis‚sion€to€release€the€caps€on€the€com‚pany's€pricing.ÌÌà ‘ àIf€the€FCC€grants€Cablevision's€motion,€then€the€company€is€expected€to€raise€or€lower€some€ofÏits€rates€for€services,€depending€on€what€RCN€charges.€For€example,€if€RCN€offers€a€deal€on€aÏpremium€channel€like€HBO,€Cablevision€could€match€it€while€charging€more€for€Showtime.ÌÌà ‘ àBoston€cable€subscribers€could€be€the€beneficiaries€of€an€old„fash‚ioned€price€war.€But€buyerÏbeware€„„€‚read€the€fine€print.€A€cheaper€sports€channel€could€mean€a€steeper€TNT.ÌÌà ‘ àAny€day,€the€city€will€issue€its€request„for„proposal€(RFP)€con‚taining€the€requirements€forÏCablevision€to€continue€doing€busi‚ness€in€the€city.€Cablevision's€15„‚year€license€expires€inÏDecember€and,€naturally,€the€company€wants€a€renewal.ÌÌà ‘ àEven€through€Cablevision€has€been€the€only€cable€firm€operating€in€Boston,€it€does€not€have€theÏexclusive€lock€on€the€market.€The€city€has€an€"open„franchise"€rule€allowing€competition.ÌÌà ‘ àAs€RCN€moves€to€the€challenge,€Cablevision€will€cry€foul,€arguing€that€RCN€should€be€boundÏby€the€same€rules.€The€steepest€price€of€doing€business€is€revenue€sharing.€Cablevision€must€giveÏa€portion€of€its€potential€profits€to€the€city.€Cablevision€will€no€doubt€argue€it€cannot€afford€the€steepÏtithe€because€of€the€new€competition.ÌÌà ‘ àRCN,€available€so€far€to€only€a€couple€of€thousand€customers,€does€not€have€to€pay€such€a€heavyÏprice€to€the€city.€But€it€is€much€more€perk„happy€than€Cablevision.€RCN€will€offer€various€sideÏbenefits€to€those€condominium€associations€and€apartment€management€firms€that€invite€theÏcompany€to€wire€a€building.€Need€a€new€roof?€A€lobby€makeover?€Call€RCN.ÌÌà ‘ àCablevision,€on€the€other€hand,€is€more€inclined€to€do€business€politically€„„€throughÏbackchannels,€campaign€contributions,€favors.€Cablevision€has€cronies€of€Mayor€Thomas€MeninoÐ  +p&) Ðon€its€payroll,€as€well€as€a€couple€of€kingmakers€with€close€ties€to€other€powerful€pols.ÌÌà ‘ àPerhaps€because€of€this€tie€with€local€pols,€at€licensing€time€Cablevision€will€paint€itself€as€aÏbeloved€local€company€„„€the€Hoodsie€of€cable.€Nevermind€the€Cablevision€headquarters€are€inÏWoodbury,€Long€Island.ÌÌà ‘ àCablevision€will€then€cast€RCN€as€the€Evil€Carpetbagging€Empire€„„outsiders€preying€on€òòusóó.Ð P   ÐÌà ‘ àAnd€you€have€to€wonder€what's€going€to€be€more€fun€to€watch:€TV?€Or€struggle€for€the€soul€ofÏyour€TV?ÌÌÌòòReprinted€with€permission€of€theÐ ð@  ÐBoston€HeraldóóÐ à0  ÐÌ(more)ÌÌò òÔ#†&åÕ&XX} !#ÔÔ‡FG[F&&åÕÔÓ  ÓUSA€Ð  ð Ðà @‘ àà @ àà @4 àTODAYÔ#†&åÕ&FFG[F6#ÔÔ‡X} X&&åÕÔó óÐ ¼  ÐÓe6Óò òMONDAY,ó ó€òòSeptemberóó€15,€1997à h àÐ Ø( ÐÌà@Û Û ìàÔ#†&åÕ&XX} Ö6#ÔÔ‡¼uö¼&&åÕÔCOMMUNICATIONS€CHALLENGEÔ#†&åÕ&¼¼uöš7#ÔÔ‡X} X&&åÕԈР¸ ÐÌà@wwìàÔ#†&åÕ&XX} ô7#ÔÔ‡LzëL&&åÕÔò òC„Tec€surges€ahead€in€phone,€cable€marketsó óÔ#†&åÕ&LLzë_8#ÔÔ‡X} X&&åÕԈР¾ ÐÌBy€Steve€RosenbushÌUSA€TODAYÌÌà ‘ àNEW€YORK€„„€If€you€hold€C„Tecððs€annual€report€up€to€a€mirror€and€study€it€closely,€youððll€findÏa€secret€message€from€David€McCourt,€chief€executive€of€the€telecommunications€upstart.ÌÌà ‘ àBeneath€the€title,€"The€Revolution€Continues,"€is€a€famous€picture€of€a€mob€tear‚ing€down€theÏBerlin€Wall.€The€wall€is€covered€with€graffiti,€so€it's€easy€to€miss€three€words€„„€written€backward„„Ïthat€McCourt€has€added:€Bell€Atlantic,€Cablevision,€Nynex.€He€equates€his€entrenched€competitorsÏwith€Communist„‚era€"tyrannies."ÌÌà ‘ àAt€a€time€when€many€big€companies€are€scaling€back€plans€to€compete€in€the€resi‚dential€localÏphone€and€cable€markets,€McCourt,€40,€is€waging€the€most€aggressive€challenge€in€the€country.Ð ¦*ö%% ÐÓ  ÓÌà ‘ àC„Tec€of€Princeton,€N.J.,€will€spin€off€Commonwealth€Telephone€Enterprises,€CableÏMichigan€and€RCN€Communi‚cations€on€Sept.€30.€McCourt€will€run€the€newly€indepen‚dentÏRCN,€which€had€$60€million€in€fiscal€1997€revenue€and€is€building€a€$7€billion€fiber„opticÏnetwork€that€will€carry€voice,€cable€television€and€high„speed€Internet€access€over€the€same€wiresÏto€residential€customers€in€24€cities€from€Washington€to€Boston.ÌÌà ‘ àIt's€already€operating€in€New€York,€Boston,€Washing‚ton€and€the€Lehigh€Valley€inÏPennsylvania.€"Someone€has€to€jump€in€the€water€and€prove€that€it€isn't€over€every‚one's€head,"ÏMcCourt€says.ÌÌà ‘ àThe€water€is€turbulent,€though.€Phone€and€cable€TV€companies€are€upgrading€their€networks.ÌÌà ‘ àð ðWe€are€not€about€to€be€out„‚marketed€by€anyone,"€Cable‚vision€spokesman€Charles€SchuelerÏsays.ÌÌà ‘ àCablevision€has€3.2€million€customers€in€Boston,€New€York€and€Cleveland.€It's€preparing€toÏcarry€phone€ser‚vice€and€high€speed€Internet€access€and€it's€offering€advanced€services€on€LongÏIsland,€N.Y.ÌÌà ‘ àCritics€note€that€RCN€is€still€reselling€Bell€Atlantic€service€in€some€areas€and€accuse€it€ofÏpaying€attention€only€to€affluent€markets.ÌÌà ‘ àThe€giants€of€the€telecom‚munications€business€have€been€wading€in€the€shallow€water€sinceÏthe€law€unleashed€competition€last€year.€Long„distance€carriers€AT&T,€MCI€and€Sprint€areÏfinding€the€going€is€slow€as€they€begin€offering€local€phone€service€to€residential€and€businessÏcustomers.ÌÌà ‘ àThe€regional€Bell€carriers€have€failed€to€invade€each€other's€local€territory.€The€cable€TVÏcompanies€have€backed€way€from€their€threat€to€offer€telephone€service,€and€the€Bells€haveÏbacked€away€from€their€threat€to€offer€TV.ÌÌà ‘ àSome€analysts€argue€that€competition€in€the€local€mar‚ket€is€unrealistic.€"Congress€got€itÏwrong.€It€thought€the€local€loop€is€like€long„dis‚tance,"€says€analyst€Scott€Cleland€of€LeggÏMason's€Precursor€Group.€The€local€companies€have€networks€worth€$270€billion.€The€longƒ¼distance€networks€are€worth€only€$40€billion.ÌÌà ‘ àCleland€says€the€local€business€is€so€expensive€that€it€only€makes€sense€to€build€one€network.ÏAnd€competi‚tors€simply€can't€make€money€buying€local€service€from€the€dominant€carriers€andÏre‚selling€it,€he€says.ÌÌà ‘ àEnter€RCN.€€McCourt€be‚lieves€the€Internet€is€stirring€demand€for€networks€that€accommodateÐ  +p&) Ðvoice,€video€and€data.€He€plans€to€grab€the€market€while€the€big€car‚riers€fight€among€themselves.ÌÌà ‘ à"We€realized€that€a€brand€new€network€designed€and€built€around€the€Internet€was€the€way€toÏgo,"€he€says.€He€had€planned€to€lease€capacity€on€the€network€of€partner€MFS€CommunicationsÏwhich€was€acquired€by€WorldCom€last€year.ÌÌà ‘ àThe€leasing€arrangement€would€have€cut€McCourt's€capital€expenses€by€half.€But€MFS,€whichÏbuilt€a€fiber„optic€system€to€provide€local€ser‚vice€to€businesses,€kept€run‚ning€out€of€capacity.€ItÏwas€1995,€the€Internet€was€just€beginning€to€surge€in€popu‚larity€and€MFS€suddenly€did‚n't€haveÏcapacity€to€spare.ÌÌà ‘ à"My€first€reaction€was€to€panic,"€McCourt€recalls.€"But€then€I€said,€maybe€our€premise€that€weÏcouldnððt€afford€to€build€our€own€net‚work€was€faulty.€We€were€lucky€the€MFS€deal€didn't€workÏout."ÌÌà ‘ àMcCourt€figures€he€can€build€his€fiber€network€for€about€$1,500€a€customer,€or€half€the€cost€ofÏbuying€an€existing€cable€TV€system.€He€should€know.€Cablevision€founder€Chuck€Dolan€hiredÏhim€years€ago€to€build€one€of€the€first€urban€systems€in€the€nation.ÌÌà ‘ àEntering€one€market€every€90€days,€McCourt€expects€RCN€to€cover€24€markets€within€sixÏyears.€He's€waging€an€aggressive€marketing€campaign,€running€ads€that€compare€phoneÏcompetition€to€the€toppling€of€the€Berlin€Wall.€He's€rolled€$35€million€of€his€own€money€into€theÏbusiness.€He€believes€RCN€will€be€to€the€residential€mar‚ket€what€MFS€was€to€the€businessÏmarket.ÌÌà ‘ àDillon€Read€telecommuni‚cations€analyst€Bruce€Roberts€thinks€RCN€can€do€it.€He€pre‚dicts€netÏlosses€will€rise€until€2001,€and€decline€until€the€company€breaks€even€in€2004.ÌÌà ‘ à"The€smaller€companies€are€in€a€better€position,"€he€says.€Big€companies€will€need€more€timeÏto€expand€their€services€because€they€have€so€many€customers.€"AT&T€has€80€millionÏcustomers.€How€is€it€going€to€provide€them€local€service€right€away?"ÌÌà ‘ àIt's€been€an€eventful€sum‚mer:€C„Tec€stock€has€climbed€more€than€20%€since€last€month.€RCNÏagreed€in€August€to€send€communica‚tions€over€Potomac€Electric€Power's€350„mile€fiber€net‚workÏin€greater€Washington.€€It€plans€a€high„yield€debt€offering€with€Merrill€Lynch€in€early€October.ÏRCN€has€75,000€cable€and€phone€customers€in€Boston,€New€York€and€Washington.€It€expects€toÏadd€16,000€in€September.ÌÌà ‘ à"I€think€David€McCourt€will€be€running€a€very€prof‚itable€and€very€formidable€residentialÏtelephone€compa‚ny,"€says€analyst€Jack€Grubman€of€Salomon€Bros.ÌÌ(more)Ð  +p&) ЇßA€B) °°xdE°¯PxAßÐ ° ÐÌà@« « ìàÔ#†&åÕ&XX} Ñ8#ÔÔ‡„Žú„&&åÕÔò òA€Promise€The€First€Step€In€Future€Pathó óÔ#†&åÕ&„„ŽúIP#ÔÔ‡X} X&&åÕԈРï? ÐÌBy€Steve€RosenbushÌUSA€TODAYÌÌà ‘ àNEW€YORK€„„€David€McCourt€is€counting€on€his€background€in€the€construc‚tion€industry€toÏhelp€make€RCN€Communications€work.ÌÌà ‘ àHe€was€one€of€seven€chil‚dren€and€grew€up€in€Water‚town,€Mass.,€an€industrial€city€where€hisÏlate€father€ran€a€construction€company.€B.F.€Goodrich€and€Underwood€Deviled€Ham€plants€wereÏfix‚tures€in€town.€The€Irish‚Catholic€family€lived€in€a€four„bedroom€home€on€a€quarter„acre€plot.ÏAn€average€student,€McCourt€liked€to€play€sports€and€wanted€to€be€a€cop€when€he€grew€up.ÌÌà ‘ àHis€interests€shifted€in€col‚lege.€He€studied€to€be€a€social€worker€at€Georgetown€University€inÏWashington€and€worked€as€a€probation€offi‚cer's€aide€in€the€city€after€graduation.ÌÌà ‘ àMcCourt€spent€a€summer€working€for€his€father€and€noticed€that€Cablevision€was€planning€toÏbuild€a€cable€net‚work€in€Boston.€A€news€story€said€urban€cable€systems€wouldn't€work€because€itÏwas€too€expensive€to€dig€up€city€streets.ÌÌà ‘ àMcCourt€told€Cablevision€founder€Chuck€Dolan€that€he€could€build€the€system€byÏThanksgiving€and€got€the€job.€"It€was€probably€stupidity€or€inexperience€that€made€me€think€IÏcould€do€it."ÌÌà ‘ àMcCourt€and€Dolan€got€into€a€disagreement€over€money.€Dolan€wanted€McCourt€to€reduce€hisÏbill€for€the€later€part€of€the€job,€saying€he€had€overpaid€McCourt€during€the€first€part,€McCourtÏsays.€The€dispute€was€finally€settled,€McCourt€says,€after€he€dug€up€part€of€the€cable.€DolanÏcould€not€be€reached€for€com‚ment.€The€young€entrepre‚neur,€then€24,€used€the€esti‚mated€$1Ïmillion€to€invest€in€his€first€communications€business:€a€phone€network€that€bypassed€the€localÏcarri‚er€and€provided€businesses€a€direct,€discount€link€to€their€long„distance€service.ÌÌà ‘ àConstruction€giant€Peter€Kiewit€&€Sons€was€running€a€similar€telephone€bypass€business€inÏChicago€called€MFS€Communications.€The€two€companies€combined€operations,€givingÏMcCourt€20%€of€the€new€company€and€a€seat€on€the€board.€He€ran€the€Boston€network€and€thenÏwent€to€Britain€to€run€McCourt„Kiewit€International.ÌÌà ‘ àMcCourt€came€back€from€Europe€four€years€ago€and€bought€C„Tec€as€a€vehicle€to€launch€aÏresidential€telecom‚munications€business.€Now€he's€breaking€up€C„Tec€and€focusing€on€RCN.€HeÏsold€his€$35€million€MFS€stake€and€put€it€in€the€new€business.ÌñBñ(more)ñBñÐ ÷*G&) ЇÌÌßA€) °°xdE°0xAßÐ à ÐÌà@&&!ìàò òAbout€David€McCourtó óˆÐ ¯ÿ ÐÌà ‘ àò òOffbeat€move:ó ó€Ran€a€television€station€in€Grenada€in€1985,€restoring€service€after€the€U.S.Ð  ß Ðinvasion.ÌÌà ‘ àò òMost€memorable€lesson:ó ó€Don't€whine.€A€friend€bit€McCourts€nose€during€dinner€at€a€BostonÐ _ ¯  Ðrestaurant€one€night€to€stop€his€whining€about€his€dispute€with€Cablevision.ÌÌà ‘ àò òFamily:ó ó€€Wife,€Deborah;€two€children.€ð ðI€met€Deborah€in€a€fur‚niture€store.€I€was€buying€aÐ /  Ðcouch€at€the€same€time€she€was€buying€a€chair.€A€year€later,€I€ran€into€her€again€at€a€function€inÏBoston.€It's€another€example€of€me€being€lucky.''ÌÌÌÌòòCopyright€1997,€USA€TODAY.€€Reprinted€with€permission.óóÐ Ï ÐÔ#†&åÕ&XX} ¸P#ÔÌÔ‡X} X&&åÕÔ€€ñCñ(more)ñCñÐ ™é Ðò òÓ  ÓÐ  ‰Ù ÐFOR€MORE€INFORMATIONó óÐ ° ÐÓ^Ó€€ÌFor€more€information€about€RCNððs€activities,€see€the€following:ÌÌòòPepco€Plans€Phone,€Web,€Cable€Service;€Joint€Venture€to€Invest€Millions€to€Challenge€LocalÐ pÀ ÐMonopoliesóó,€Washington€Post,€August€6,€1997.Ð ` ° Ðwebsite:€http://www.washingtonpost.com€ÌÌòòSale€of€Erol's€Sends€Rivals€a€Message,Ô#†&åÕ&XX} ¿]#ÔÔ‡X} X&&åÕÔ€óóWashington€Post,€January€22,€1998.Ð 0 € Ðwebsite:€http://www.washingtonpost.comÌ€€€€€ÌòòRCN:€€The€Little€Phone€Company€that€Can?óóÔ#†&åÕ&XX} ×_#ÔÔ‡X} X&&åÕÔ€Business€Week€Online,€January€27,€1998.€à Ð àÐ P  Ðwebsite:€http://www.businessweek.comÌ€€€€€ÌòòRCN's€High€Wire€Act,Ô#†&åÕ&XX} ¯`#ÔÔ‡X} X&&åÕÔ€óóForbes,€December€29,€1997.Ð Ð  Ðwebsite:€http://www.rcn.cñDñdñDñom/hqfr-forbes.htmlÔ#†&åÕ&XX} }a#ÔñEñÐ À ÐÌOrñEññFññEñe€vñEññFññGñ€visit€ñGññHññGñour€website€ñGññHññIñRCNððs€WebSite€at:Ìò òñIññJñwww.rcn.comó óñJññJññIñó óñIññJñ