---------------------- Forwarded by Vince J Kaminski/HOU/ECT on 05/23/2000 
06:33 PM ---------------------------


Traci Warner@ENRON COMMUNICATIONS on 05/23/2000 04:07:11 PM
To: Titman@mail.utexas.edu
cc: Vince J Kaminski/HOU/ECT@ECT 
Subject: Enron Broadband Services

Dear Sheridan, 

Thank you for taking time to speak with Brad Nebergall, Vince Kaminski and 
myself regarding distance learning for the University of Texas Energy and 
Finance program.  We enjoyed speaking with you regarding your plans for 
taking the classroom to the web and feel that there are numerous 
opportunities for Enron and UT to work together on this venture. 

As you requested, I am sending you additional information on the services 
that can be provided by Enron Broadband Services (EBS).  EBS offers two 
distinct product offerings that could be provided to UT students.  

1) EBS offers our customers a full spectrum of bandwidth services.  This 
includes dark fiber, OCX-lambdas, DS3 and above circuits, and bandwidth 
management solutions.  Our focus is to help the enterprise customer add value 
and flexibility to their bandwidth service needs with features such as 
bandwidth "on demand".  EBS owns over 18,000 miles of fiber optic cable that 
provides EBS with an extensive network in the USA and Canada.  

2) Enron offers a full turn-key streaming media service called e PowerTM  
MediaCast.  This service can involve the entire management of the entire 
process from filming through encoding, hosting and streaming or to supply the 
specific services that a client could need.   Each client  would access their 
client's media through an URL embedded on the appropriate client 
website(s).   The content can streamed live or stored to be played 
on-demand.  EBS can deliver the streams at bit rates from 20kbps to 1Mbps or 
higher.  There are no additional resources (hardware, software or human) 
required by a client to use our product.  

Our current customers has found the superior quality of e PowerTM  
MediaCast.has improved their ability to deliver a clear corporate philosophy 
and increase their customer retention.  The e PowerTM  MediaCast Network has 
a distributed server architecture supported by a private global fiber and 
satellite network (a pure Internet Protocol strategy) with embedded software 
intelligence that sets it apart from other network providers. The EBS e power 
TM private network has dedicated servers in over 200 cities in the USA and 
Canada. After the service is initiated, each client  can  access to reporting 
of the viewership statistics for your content on the EBS Intranet Site 
(www.epoweronline.com) that is updated on a daily basis.  Each client is 
provided with a User ID and Password.  EBS guarantees their customers a 
superior quality of service level.       

Our customers have found three major benefits.  First, Enron stores our 
clients' content on our servers which reduces the strain on clients' central 
servers and Website.  Second, Enron constantly monitors its clients' sites 
and updates its servers regularly to keep the data fresh.  Finally, Enron 
sharply cuts the time it takes a viewer to receive our clients' content by 
delivering the media across Enron's private network and with the use of 
software (bandwidth operating system) that decides within milliseconds which 
Enron server can deliver the fastest.   To do that Enron servers, which 
deliver our customer,s content, are located in over 200 cities in the US and 
Canada.  This places your content close to the end user (typically, "one-hop" 
away), and allows up to 500,000 simultaneous viewers at any time.  This 
enables high quality, rich media to be streamed without delay and congestion 
to an end user's desktop.  In fact, Enron recently announced plans to install 
18,000 of our media servers (Compaq and Sun) into our global Data Centers 
over a three year time period to extend our service domestically and 
internationally.

We offer two internet sites to browse that demonstrates the true TV-like 
experience of the e PowerTM  MediaCastexperience.  

 1) http://www.enron.net/mediacast
  
 a) User name and login ID are both  -  epower4. 

 2) http://www.enron.net/finance/srv_demo/enron/ms1250.html

 a) Once you are at this page called Today's Feature - click on the ACME TV 
and chose one of the channels
 b) Chose the speed of your video player (either REAL or WindowsMedia Player)
 c) Hit the play arrow button on the "Screen" that pops


Finally, I estimate the cost per student to stream the course would be 
approximately $75.00.  Please remember this price is for the streaming only, 
and is priced on a per MB delivered basis.  In addition, there will be a flat 
monthly charge to administer the program.  Production and encoding can be 
provided at an additional cost.    Therefore, if the stream rates in my 
assumptions listed below change, our pricing will change slightly.  As you 
will see the cost for the streaming would be a minimal and would not prohibit 
the students from taking the course on-line.  I apologize that we do not have 
any example distance learning clips that we are able to share with you at 
this time.  However, I would be happy to demonstrate our capabilities to you 
on your desktop, if you are interested. 

I look forward to discussing with you in greater detail how either of these 
services could be used to expand the reach of the University and its course 
offerings.    I will contact your office at the beginning of next week to 
continue this discussion.  If you would like to contact me prior to next 
week, please do not hesitate to call me at 713 853-3242.    

Sincerely,

Traci Warner
Director, Central Region Origination
Enron Broadband Services
Phone (713) 853-3242
Cell (713) 705-7201



Price Quote Assumptions:
100 Students enrolled
30 hours of course work per semester

Encode at 4 rates - 28K, 56K, 100K, 300K

# of students per viewing rate:
15% at 28K
40% at 56K
25% at 100K
20% at 300K