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Technology Stocks : AUTOHOME, Inc
ATHM 23.64-1.3%Nov 19 3:59 PM EST
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To: gpowell who wrote (14407)8/13/1999 10:42:00 PM
From: gpowell  Read Replies (3) of 29970
 
3. The quick bandwidth saturation of the last mile. This can be controlled by tiered pricing structures that will facilitate competition for greater bandwidth carrying capabilities. Eventually the customer will obtain more and cheaper bandwidth quicker than could be possible in the anti competitive situation which exists today.

Expanding on #3.

Assuming nominal node size is 500 and penetration rate trends to 25%, by 2001, then local loop will have 125 users.

30mb/s bandwidth can be partitioned into 4 tiers of service with maximum transfer rates set. The four tiers should reflect currently available DSL speeds so that the Cable Cos can set the penetration rate which best balances revenue with QoS.

Bandwidth tiers max. rate (kb/s) (not guaranteed at all times).

Tier one 128K
Tier two 256
Tier three 512
Tier four 1024

As open access matures and apps which leverage broadband technology are created the cable cos can begin to increase the bandwidth by implementing schemes such as the mini-fiber nodes or allocating another 6Mhz channel. Assuming RBOC's and wireless companies are implementing similar bandwidth increasing programs then the customer should see steady increases in bandwidth while maintaining QoS regardless of the distribution system.

Let's face the facts - for those that have @Home the download speed is great but the experience is lacking the richness one imagines prior to getting the service. This will change for the better as open access is implemented.
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