October 28, 1997 -- U S WEST Communications (NYSE:USW) has finally
relaunched its DSL service, dubbed "MegaBit Services." "MegaBit" DSL access
will be available in a phased roll-out from wire centers serving some 500,000
customer lines in Phoenix.
The package includes a new "U S WEST.net" Internet service. "U S WEST.net" is
available immediately throughout Phoenix.
Both services -- available separately or as a package -- will be offered in other
cities in U S WEST's 14 states in coming months.
U S WEST is claiming that its new "MegaBit Services," the nation's first broad
commercial offering of the long-awaited, high-speed Digital Subscriber Line (DSL)
access technology that keeps consumers and businesses continuously connected to
the Internet.
"This is a real breakthrough. No longer does getting on-line mean having to wait in
line. No longer does the World Wide Web have to be the 'World Wide Wait',"
said Solomon D. Trujillo, president and CEO, U S WEST Communications.
"Today, we're unleashing the power of the Internet so everyone -- business and
residential customers -- can access its wealth of information. U S WEST's new
one-stop shop of Mega-networking services gives people the speed and simplicity
they need to make the Internet a vital part of their lives. We're making it as reliable,
quick and easy-to-use as the telephone."
U S WEST "MegaBit Services" gives customers advanced DSL transport to the
Internet or their corporate networks at speeds up to 25 times faster than 28.8
Kbps Modems. The service is unique because it lets customers always stay
connected to the Internet or other data networks over a dedicated portion of their
existing phone line -- with no dial-in required. Customers simply open their Internet
browser software, and can make or receive phone calls over the same line
simultaneously while surfing the Internet.
To provide an Internet platform for a wide range of customers, U S WEST is also
launching its fast, reliable U S WEST.net service, offering an array of Internet
features and dial-in speeds of up to 56 Kbps. Used in tandem with "MegaBit
Services," no dial-in is needed and the full range of DSL performance is available.
"MegaBit Services" DSL Commercial Roll-Out in Phoenix
Previously, advanced DSL was limited to only select businesses and others on a
trial basis. "U S WEST MegaBit Services" makes DSL available for the first time
to a broad range of residential and business customers, who will benefit from its
"always-on" connection and dramatically improved on-line performance. DSL
works over existing phone lines, providing customers their own private, dedicated
digital connection off the standard voice network. This gives subscribers increased
security and reliability, eliminating traffic jams that come from having to share
copper or fiber-optic lines with other on-line users.
"Today, Phoenix is connected like no other city in the country," said Joe Zell,
president, U S WEST !NTERPRISE Networking. "It has one of the fastest-
growing high-tech economies and a positive business environment. That's why
we're making it the first city in the nation to have affordable, high-speed Internet
and corporate network access. "MegaBit Services" gives customers the ability to
finally get maximum value out of the Internet, and enables businesses to establish
office-quality work-at-home connections."
"MegaBit Services" offers several DSL options to meet the needs of all Internet
and data network customers:
"MegaHome." At only $40 per month plus installation, "U S WEST
MegaHome" gives recreational Internet or occasional work-at-home users
192 Kbps access, 7-14 times faster than standard modems.
"MegaOffice." Telecommuters and smaller businesses with greater
bandwidth needs can select "U S WEST MegaOffice," which provides
access at 320 Kbps for $65 per month plus installation.
"MegaBusiness." Heavier-use business customers and serious cyber-surfers
who need more bandwidth and video capability can get "U S WEST
MegaBusiness." With 704 Kbps at $125 per month plus installation,
customers can work from home at speeds once only available at the office.
"MegaPak." Customers can also get high-speed DSL along with unlimited
Internet service in "U S WEST MegaPak," which combines "MegaHome"
and "U S WEST.net" at $59.95 per month and a discounted installation fee.
Other "MegaBit" users can add "U S WEST.net" for $19.95 per month.
"MegaCentral." Businesses and Internet service providers (ISPs) that want
an end-to-end package of DSL connections for their customers or
employees can install "U S WEST MegaCentral" at their host site.
"MegaCentral" gives businesses the ability to keep employees continuously
connected to their own private high- speed Intranets, and lets ISPs keep
customers continuously linked to the Internet -- all via "MegaBit Services."
Pricing for MegaCentral is believed by TeleChoice to be: 704Kbps: $450;
1.5Mbps: $850; 3-45Mbps in 3Mbps increments: $1600 for 3Mbps,
+$250/3Mbps increment thereafter.
To hook up customers, "MegaBit Services" will install a small DSL connection box,
convert the customers' computer dataport and provide instructional material on
their new DSL product. Customers can also get a "one-bill" option, which puts all
their DSL, Internet and local phone charges on a single monthly statement. When
briefed several weeks ago, U S WEST told TeleChoice that the installation fee
would be $215 for MegaHome through MegaBusiness. The installation for
MegaCentral is unknown at this time.
For business and government customers setting up telework programs, "U S
WEST" offers its "Telework and Mobility Solutions" services. This end- to-end
package integrates professional services, software, hardware, data transport,
service and support into a telework program customized to the organization's
needs. In the emerging virtual work environment, "U S WEST Telework and
Mobility Solutions" helps employees, students, teachers, even healthcare
practitioners perform outside their traditional settings.
"U S WEST.net" Internet Service
Available with "MegaBit" or as a stand-alone Internet service, "U S WEST.net" is
engineered with an extremely high ratio of dataports to customer lines, so that
subscribers won't have to deal with busy signals or slow connections. "U S
WEST.net" platforms are built to withstand occasional equipment and backbone
failures that may take other Internet providers off- line, and are monitored
24-hours, seven-days-a-week.
For $19.95 per month, customers receive unlimited Internet access, newsgroup
access, two e-mail boxes, two megabytes of personal Web-page storage and
24-hour, seven-day technical support. U S WEST.net's homepage will also link
directly to "azfamily.com" and a U S WEST custom version of "Snap! Online" from
CNET: The Computer Network, offering localized business, restaurant and other
Web information.
To make getting on-line hassle-free, U S WEST.net provides easy installation
instructions and customized "Netscape Communicator" 4.0 software. Customers
also receive an easy-to-understand Internet guide that explains how to send e-mail
and search the World Wide Web. U S WEST also offers a "one- bill" option for U
S WEST.net that combines Internet and local phone service charges on a single
monthly statement.
Customers who need additional capabilities for video-conferencing and other data
network uses can get U S WEST ISDN OnePak service. In Phoenix, a special
offer is available that includes a 128 Kbps ISDN line with full-voice features, a
high-speed digital modem, unlimited access to U S WEST.net, and "Smooth Start"
customer support for $133.95 per month with a one-time $31O equipment charge.
As part of the offer, customers receive a $50 rebate that applies toward U S
WEST.net service.
PairGain In, Ascend Out
The launch is supported entirely with equipment from PairGain, representing a
near-total abandonment of Ascend IDSL from U S WEST's DSL strategy.
TeleChoice believes this indeed is finally US WEST's main DSL thrust, and the
RADSL question is still outstanding. US WEST is still evaluating RADSL providers
at this time.
MegaHome through MegaBusiness include the PairGain Etherphone, which is
installed outside in the NID. Upgrading between these three is a simple phone call
and software change.
MegaCentral includes a Cisco Catalyst 5000 series, managed by U S WEST
!NTERPRISE. Customer chooses the pipe size to the MegaBit services backbone,
so controls its own "oversubscription" to remote corporate users.
TeleChoice believes the deployment in 1997 to be in two markets, in Utah and
Arizona. In 1998, a total of 14 cities will deploy DSLAMs, RADSL, DLC/DSL.
These services will include authentication, device-level encryption, multi-destination
support, and initial QoS for SLA.
This represents a change in strategy for U S WEST, as the carrier had initially
announced broad deployment of IDSL and HDSL in 14 cities. Based on customer
feedback and field comment, that strategy now is to roll into fewer markets initially
but provide metro-wide coverage, rather than all markets with selected pockets of
coverage within the metro area.
TeleChoice believes that U S WEST abandoned the IDSL solution because the
telco: (1) did "significant market research" which determined that customers were
not interested in a lower speed option being offered in addition to the MegaHome
level of service in nearly the same timeframe. The telco felt market would be
short-lived. (2) did not believe that vendors could support aggressive launch
schedule. (3) did not want to manage multiple boxes for service architecture. (4)
could not offer a smooth/easy upgrade path for customers under combined
IDSL/HDSL plan.
Vendor Web Sites
Ascend Communications, Inc.
PairGain Technologies, Inc.
US West !nterprise Networking |
