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Technology Stocks : InterSpeed Inc-(ISPD)
ISPD 0.00Mar 7 4:00 PM EST

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To: cdtejuan who wrote (116)11/16/1999 7:53:00 PM
From: Stephen Yarger  Read Replies (3) of 223
 
All right I'm here and hopefully I can answer your DSL questions. I have a degree in MIS, but it has been about 1 1/2 since I really studied DSL. Here is a quick breakdown on DSL for beginners:

DSL (Digital Subscriber Line) is a technology that allows high-speed data transfer over traditional copper telephone wires. It can operate at speeds up to 1.5 Megabytes per second, which is the same speed as a T-1. Because DSL utilizes the existing infrastructure it is much less expensive than leasing a T-1 line. The only real competition for the DSL market are cable modems (the term modem is a misnomer here because when using a cable based service provider the information stays digital the entire time, MODEM is really an acronym for modulation-demodulation which refers to digital data being transferred to analog, transferred over an analog telephone line and then remodulated into digital form again when it reaches the other computer).

Cable modems hit the market place before DSL in many areas, but it is a far inferior technology to DSL. Cable modems can offer excellent speed, but this speed is cannibalized when multiple users have cable modems. With cable modem technology the bandwidth is shared, with DSL a customer receives dedicated bandwidth. For consumers, sharing bandwidth will be OK until more people sign up for cable modem service, but for business's sharing bandwidth is not even an option. A business needs dedicated bandwidth to insure mission critical data is transferred quickly and accurately. A business cannot afford to have delays caused by his neighbor surfing the web. Therefore DSL is the only real choice for businesses. Sure many large businesses that require huge amounts of data will stick with their T-3 lines, but any business that uses a T-1 or ISDN line will be jumping at the chance to use DSL because of the cost advantage over these aging technologies.
If you guys have any specific questions about DSL or ISPD's products in particular I'd be happy to give it a shot, but no guarantees I will know the answer.

Later I will post my research on why I think ISPD in particular will thrive in this market place, right now I have to go eat dinner.
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