PETALUMA, Calif. -- AFC® (Nasdaq: AFCI), The Acronym for AccessSM, today announced that members of the Texas Lone Star Network (TLSN), a statewide consortia owned by 38 independent operating companies (IOCs) and telephone cooperatives, have successfully completed a 500-mile test deployment of IP video using AFC's TelcoVideoSM solution.

The trial involved a TLSN-managed fiber link between the video headend at Cap Rock Telephone Cooperative's central office in Spur, Texas and ETEX Telephone Cooperative's headquarters in Gilmer, Texas. Both IOCs deployed AFC's Telliant(tm) multiservice central office platform to provide Layer 3 Internet group management protocol (IGMP) functionality and transport.

The route between these two points also passed through other TLSN-member operating territories, including Santa Rosa Telephone, Comcell Telephone, Nortex Communications, and TXU Electric's Communications Division.

"The goal of this trial was to demonstrate the feasibility of transporting digital IP video signals long distances over a fiber SONET ring with electrical handoff to local coaxial, copper, or fiber-to-the-home facilities," said Barak Harlan, lead engineer and project coordinator at Cap Rock. "The video trial (from January 30 to March 15, 2004) proved that it could be done. Everything worked great, and there was no loss of video quality or jitter."

At the other end of the 500-mile fiber test link, AFC's Telliant delivered video via ADSL to an IP set-top box at ETEX Telephone Cooperative's Pine Acres exchange in Gilmer.

According to John Schofield, chairman, president and CEO of AFC, "This trial provides further evidence of Telliant's ability to deliver exceptional IP video channel multicasting and distribution performance across large networks spanning hundreds of miles. With our proven TelcoVideo solution, carriers can be confident that they can realize compatibility, reliability, and operational efficiency based on positive field results such as this."

While many members of the Texas Lone Star Network already offer analog video services to their subscribers, TLSN management wants to be in a position to resell digital IP video programming and transport from a single regional headend to everyone in the network, as well as to neighboring IOCs and cooperatives throughout the state and as far away as Kansas.

"Digital video is simply a better product. It enables our 38 IOCs and cooperatives-with their combined total of more than 400,000 subscribers-to compete with non-member cable companies currently offering only analog video, as well as with satellite TV providers who do not offer local programming, except at an additional cost or on a limited basis," commented Richard Adams, senior manager with TLSN.

"We know the demand is there. The success of this trial also gives us the comfort level of knowing that such a long-haul IP video network is definitely doable," commented Charlie Cano, engineering manager at ETEX Telephone Cooperative. "The next step is to examine the business case for delivering IP video to all interested parties and determine a cost-effective pricing structure that will make it affordable. We will need a commitment from other TLSN members to move forward with statewide implementation, leasing agreements, and contracts with content providers."

Advanced Fibre Communications Inc. (AFC)