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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here
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To: Frank A. Coluccio who wrote (546)12/3/1996 1:25:00 PM
From: Marc Bejarano   of 12823
 
here is an excerpt from a dow jones new article on how global telecommunications companies are focusing on local markets for the future:

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BT's Bonfield also gave further details about the company's broad-band strategy. He predicted that BT will use ADSL technology, claiming it would be the technology of the future and wouldn't require a multi-billion pound investment in fiber-optic networks.

Currently BT's license forbids it from offering simultaneous distribution of broadcast signals on its network until the year 2000. But U.K. regulators are expected to review this condition in 1997. BT could, for example, under current license deliver movies on demand. Bonfield wouldn't reveal the time frame of the ADSL launch for what he termed 'competitive reasons.'

'It will be quite a large-scale roll out,' he added. BT said later that it expects to announce in early 1997 the role of ADSL and its broader, multimedia strategy.

Earlier this year, BT completed an extensive trial, costing upwards of 50 million pounds, in two U.K. cities to test video on demand and other multimedia applications. However, to date, BT hasn't been willing to publicly release the results of its trials, which involved several thousand residential users.

Analysts say the importance of BT's decision on ADSL shouldn't be underestimated. Garry Stephen, managing director of Broadview Associates, a telecommunications merger and acquisition consultancy, said ADSL will allow BT to enter the broad band market at a very low fixed cost per household. He noted that BT would get substantially more usage out of its existing copper wire network with ADSL technology.
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marc
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