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Strategies & Market Trends : Gorilla Game Investing in the eWorld

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To: Mike Buckley who wrote (118)9/5/1999 3:17:00 PM
From: RTev  Read Replies (1) of 1817
 
[Interesting thread, Teflon.]

The cable providers are also content providers. The xDSL providers are not; they sell to the content providers and to ISPs that offer no content.

It seems so difficult to generalize since there are so many varieties among providers of both cable and DSL. Even though many of them -- TWX and Cox as prime examples -- the cable companies aren't yet using their infrastructure to feed dedicated content to their users. Their content is, mostly, internet media available to anyone with a connection. They do, in general, provide email and news servers as part of the connection, but not much content.

Some DSL providers actually go farther than the cable guys as content providers. Here's an example of the content sold by an ILEC, Cincinnati Bell: company.zoomtown.com

Even when they don't go that far on the content side, all of the ILEC's provide an option for the same kind of email+news+web-hosting services that are provided by @home. Stick in the name of an RBOC along with ".net", and you'll find an ISP. (http://www.bellatlantic.net/, for example.) Users of DSL usually have a choice to go to another ISP, but the costs are often higher.

The data CLECs, as you note, sell their services through an ISP. (Just one example: speakeasy.net which resells Covad service.) That's a tough business to be in since they're competing with ILECs who offer lower costs -- sometimes significantly lower. It shows in the numbers, so far, with ILECs getting the majority of DSL subscribers.

As I've looked at the various services, the general factor that seems to distinguish marketing of DSL is quality-of-service. Most business-class DSL services provide a QOS guarantee that would be nearly impossible on cable (which is why even @home offers DSL for business). Although residential service rarely has a guarantee, many of the providers emphasize the dedicated line and the enhanced security of DSL.
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