NBCi, Telocity Team Up

NBC Internet Inc. has formed an alliance with closely held Telocity to offer a co-branded high-speed Internet service using Telocity’s technology. Unlike most high-speed Internet services, Telocity offers technology that can be installed by customers without additional work by a technician. It runs over conventional telephone wires. The deal is backed by a joint investment in Telocity by NBCi, NBCi’s 47.3% owner NBC Networks, GE Equity and ValueVision International Inc. The investors will receive a 19.5% stake in Telocity. Telocity will receive $37.5 million in cash and $33 million in NBCi and NBC television and online promotion. NBC and GE Equity are units of General Electric Co. The service will feature entertainment, shopping, games, search and community services. NBCi shares rose $8.13 to close at $79 on Nasdaq.