EXHIBIT 99.1

HomeNet Communications Contacts:
Russell Page, 801-523-3730(wk)/801-787-8435(cell), rpage@politis.com, for
HomeNet Communications David Politis, 801-523-3730(wk)/801-556-8184(cell),
dpolitis@politis.com, HomeNet Communications

FOR IMMEDIATE RELEASE

HomeNet Communications Teams with Level 3 to Expand VoIP Offerings

         'integrated Triple Play Provider' joins forces with Level 3 to
                  offer local numbers to 26 million households

PROVO, Utah - October 27, 2004 - HomeNet Communications, Inc., a pioneer in
iTPP(TM) (integrated Triple Play Provider) voice, video and data services, today
announced it has signed an agreement to join the Level(3)EnabledSM Partner
Program to use (3)VoIP Enhanced SM service from Level 3 Communications, Inc. in
more than 50 major US markets.

VoIP, or Voice over Internet Protocol, is the technology that allows telephone
calls to be made via the Internet.

As a Level(3)Enabled partner, HomeNet Communications
(www.homenetcommunications.com), will use Level 3's (3)VoIP Enhanced Local
residential phone service to its current fiber-optic telephony solutions and to
offer national and international long-distance telephony services to all HomeNet
markets. HomeNet offers integrated triple play services (voice, video and data)
over municipal-owned, fiber-optic broadband networks and will soon offer these
services over the iProvo network in Provo, Utah.

"Partnering with Level 3 allows us to offer HomeNet's local VoIP service to more
than 50 major markets in the U.S. as well as provide national and international
long-distance service for our customers," said Kelly Ryan, chief executive
officer of HomeNet Communications. "HomeNet VoIP customers now have a very
competitively priced voice solution as a new alternative to traditional phone
service and pricing."

(3)VoIP Enhanced Local Service
Level 3's (3)VoIP Enhanced Local service allows HomeNet Communications to
enhance and develop residential voice services using Level 3 provided building
blocks, including:

         o Local calling (including access to the PSTN),
         o Local phone numbers,
         o Operator assistance,
         o Directory listings and assistance,
         o E911 emergency services, and
         o Local number portability.

(3)VoIP Enhanced Local service provides these essential components while
enabling HomeNet Communications to retain the flexibility to manage and control
end-user features without the headaches of implementing complex interconnection
arrangements.

"Level 3 has given us the ability to expand our HomeNet VoIP offering across the
country and to offer a more robust package for our customers," Ryan said. "Now
when a customer selects HomeNet VoIP, they can get unlimited nationwide calling
as well as make very affordable calls to Canada and Mexico. Long distance phone
service will be significantly cheaper."

About HomeNet Communications
- ----------------------------
Headquartered in Provo, Utah, HomeNet Communications is a full-service iTPP(TM)
(integrated Triple Play Provider) offering the first-ever municipal delivery of
true 1Gbps fiber optic video, voice and data content to homes and businesses
through one voice/data connection. HomeNet combines high-speed network
connectivity with DVD-quality video, digitally clear telephone conversation and
ultra high-speed Internet connectivity at prices competitive with traditional
service providers.



The Level 3 logo is a registered service mark and Level(3)Enabled is a service
mark of Level 3 Communications, Inc. in the United States and/or other
countries. (3)Tone is a service mark of Level 3 Enhanced Services, LLC in the
United States and/or other countries. (3)Tone Business service is provided by
Level 3 Enhanced Services, LLC., a wholly owned subsidiary of Level 3
Communications, Inc.

This news release contains forward-looking statements within the meaning of the
Securities Act of 1933 and the Securities Exchange Act of 1934, as amended. Such
statements are subject to risks and uncertainties that could cause actual
results to vary materially from those projected in the forward-looking
statements. The Company may experience significant fluctuations in future
operating results due to a number of economic conditions, risks in product and
technology development, liquidity constraints, the effect of the Company's
accounting policies and other risk factors detailed in the Company's SEC
filings. These factors and others could cause operating results to vary
significantly from those in prior periods and those projected in forward-looking
statements. Additional information with respect to these and other factors,
which could materially affect the Company and its operations, are included on
certain forms the Company files with the Securities and Exchange Commission.