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Technology Stocks : First Virtual Corporation (FVCX)

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To: Thomas Kelly who wrote (244)10/23/1999 6:42:00 PM
From: Manx  Read Replies (1) of 323
 
FROM FOOL.COM
Subject: Why ATM
Date: 10/22/99 10:21 AM

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Author: 1newinvestor
Number: of 265
Recommendations: 0

This post was from the following address by a michaelchester:

messages.yahoo.com

While DSL could be a viable alternative it is not a cost effective one. An end user must be
within 3 miles of a DSL switching station for transmission to work at 100%. This would
require a substantial investment in upgrade of infrastructure, which the telcos are reluctant to
make especially in rural areas. Additionally, ATM is a managable method of transimission
which makes it much more attractive for the end user.

ATM allows segragation of Voice, video and data over the same pipeline giving end user
more bang for its telco buck. The most attractive feature of FVC's product mix is its video
portal and gateways which allow different methods of transmission the ability to
communicate with each other. ISDN, Frame relay and DSL customers can use the portal as
translator (more or less) and allow video conferencing where in the past they could not go.

If you were using ISDN for VC, you could only "see" other ISDN users. Wtih the FVC
configuration, ISDN user can now see ATM or frame relay transmissions if they go to the
portal. The smartest ploy by FVC, in my opinion, was to get the telcos to house the video
portals. Initially, my clients (primarily education and municipal) were exploring ways to
become video portals themselves. The cost of this infrastucture was prohibitive to individual
institutions which subsequently required collabortion to share the burden of the infrastucture.

As you may or may not realize, this can be a time consuming effort getting clients to aggree
on who pays for what and who controls what. I estimate that the use of telecos as the video
portals moves the timeline on rapid deployment of Video ahead by 12-18 months in my
market. This of course causes other issues such as internal infrastructure and getting the
transmission to the desktop. Overall, however, FVC has positioned itself as a leader in the
video arena for many years to come. IMHO
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