Has this been posted yet? Any ideas on the implications or resulting stock plays?
NEW YORK. 1:00 PM EDT-A new kind of broadband technology from startup Advent Networks lets cable companies shoot a lightning-fast 40 megabits of bandwidth to their Internet subscribers. The technology is poised to change the face of the networking world and by comparison make the one-megabit connections promised by cable and digital subscriber line (DSL) seem like mere morsels.
What's more, the prices are comparable to DSL and cable, ranging anywhere from $40 to $100 per month, according to Advent Chief Operating Officer David Fruhling.
The Austin, Tex., company, which launched this week, developed the technology called UltraBand and could make a killing since competitive service providers and cable companies are expected to install it in their networks later this year. UltraBand says tests are under way but have not disclosed participants or likely customers.
UltraBand runs over the cable network infrastructure, but unlike regular cable modem service, which requires users on the network to share bandwidth, UltraBand modems allow each user a dedicated 40-megabit-per-second connection to the Internet.
The mastermind behind Advent is cable industry guru and technologist David Pangrac, who as corporate vice president at Time Warner (nyse: TWX) oversaw its network upgrades and introduced fiber optics into the cable services industry.
Pangrac, in fact, was the main attraction of Advent for Geoffrey Tudor, Advent's chief executive. "Dave Pangrac's career has been creating technology platforms that sweep the cable industry," says Tudor. "Joining Advent was one of those opportunities for me that come around once in a career."
The company's initial backing of $5 million comes from Austin, Tex.-based Murphree Venture Partners, Southern Union (nyse: SUG), a public utility with 1.6 million subscribers, and Tom Meredith at Dell Ventures. Tudor says he expects its second round to reach $30 million.
The combination of funds and technology puts Advent in a good position to compete in an already highly competitive broadband market where the demand for speed seems insatiable.
forbes.com |
