SBC gambles big on
DSL
October 20, 1999
Web posted at: 10:10 a.m. EDT (1410
GMT)
by Tim Greene
From...
cnn.com
(IDG) -- SBC on Tuesday announced Project
Pronto, a $6 billion overhaul of its network that
gambles on digital subscriber line technology to
provide broadband services.
Scheduled to be
completed by the end of
2002, Project Pronto calls
for:
Extending fiber
networks closer to
customers.
Installing DSL remote terminals so the
technology can reach more than 80% of
customers.
Converting business T-1 circuits from copper
lines to fiber, enabling fast turn-ups of new
broadband services.
Installing ATM switches in SBC's trunking
backbone, replacing circuit switches.
SBC promises the network will be user controlled,
giving customers the ability to turn services on and
off.
The minimum guaranteed download speed for DSL
will jump from 384K bit/sec to 1.5M bit/sec, but the
price will remain the same at $39 per month. The
maximum speed will jump from 1.5M bit/sec to 6M
bit/sec for $129 per month.
After Project Pronto is completed, all customers
who can get DSL will be guaranteed the 1.5M
bit/sec downloads. Only 60% will be close enough
to SBC's DSL mulitplexers to get 6M bit/sec.
SBC says it expects to take in
$3.5 billion more per year
from its DSL services after
Project Pronto.
SBC would not say whose
equipment will be used in the
upgrade, but says Lucent and
Nortel ATM gear will be in
trails soon to act as trunking
switches to anchor traditional
local voice switches.
Of the $6 billion, 75% will be
spent on local loop
improvements and the rest on
backbone upgrades.
SBC says it expects to
capture 40% of the broadband
access business in its service
area, with the reset being split
by cable providers and
business-oriented competitive
local exchange carriers.
SBC says it may have to buy
up two more companies, one
to give it a wireless presence
and another to help its
strategy of expanding into
local markets outside its
home territory.
SBC has bought up Pacific Telesis, Nevada Bell,
Southern New England Telephone Company and
Ameritech since the Telecommunications Reform
Act of 1996 was passed. |
