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Technology Stocks : USRX

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To: Jeffery E. Forrest who wrote (16696)3/25/1997 6:36:00 PM
From: drmorgan   of 18024
 
All, this is a letter I sent to US West concerning xDSL, and their reply.
Look's to me like if you ever want affordable high bandwith in US West territory, get a Cable modem!

Derek>>>>

Steve,
I would like to respond to you again concerning xDSL. The cable
companies are deploying more rapidly than I thought they would. Not in Salt Lake yet, but let's look at their pricing. I'm seeing $37 to $45 per month unlimited internet access. Steve I mean no disregard at all to your company but if they (cable companies) pull this off the only people you will be serving are corporations. Actually I would like to know if that really is your intent because unless you offer xDSL cheaper than what I pay for ISDN now, you are not going to sign up very many people at that cost. With US West fighting the Public service commission over ISDN fee's just how do you plan on getting high bandwidth to the public? Steve, it is starting to look bad for you, and unless US West can pull together an affordable pricing scheme
you will not be a player in providing the masses high bandwidth. Iwould prefer xDSL over cable in a minute but the total cost you will be able to charge is $45 to $50 per month, including ISP fee's. I would like your honest opinion if you feel US West can accomplish this.

Regards,
Derek Morgan

Derek,

Thanks for letter.

You are right. Cable modems are going to get a lot of the casual
users of the Internet. Our focus has always been on the corporate
customer to get into the marketplace.

Our service is based on what the corporate users are requesting:

1. Secure Links
2. High speed intranet access
3. Scalability
4. More Security
5. Managed service
6. Link integrity
7. More security

As you can see, these are areas not addressed by the cable modems.
The costs for providing these services are not going to be in the
cable modem range for a couple of years when technology costs come down.

For those users who need it, the service will be a value. Whether
IDSL or HDSL, the service will have its' niche market and pricing.

Steve Lane
To: sxlane@uswest.com
Subject: Re: xDSL
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