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Technology Stocks : NorthPoint Communications Holdings, Inc. (NPNT)

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To: DD™ who wrote ()	11/11/1999 10:15:00 PM
From: Brent Gilbertson	Read Replies (2) of 786

WASHINGTON, Nov 11 (Reuters) - High-speed Internet service over telephone lines should get a boost next week from the Federal Communications Commission, industry officials said on Thursday. The agency is expected to order major local carriers, such as Bell Atlantic Corp. <BEL.N> and SBC Communications Inc.<SBC.N>, to share their lines and allow competitors to offer high-speed data service while the established carrier continues to offer basic voice service to the same customer. So-called line sharing could dramatically reduce the monthly fees upstart data carriers have to pay the major local carriers for leasing use of the copper wires that run into the homes and businesses of customers. Under current rules, data carriers have to pay the full cost of a line even if they only want to offer high-speed Internet connections. The largest data-oriented upstart carriers are NorthPoint Communications Group Inc.<NPNT.O>, Covad Communications Group Inc.<COVD.O> and Rhythms NetConnections Inc. <RTHM.O> All of the new companies, as well as the Bells, rely on Digital Subscriber Line technology to speed Internet connections. DSL transmits information over an ordinary phone line in frequencies that cannot be heard by the human ear and are not typically used by regular voice traffic. The most popular versions of DSL are limited to customers living within about three miles of a phone company central switching office and offer speeds 50 to 100 times faster than ordinary modems. So far, DSL deployment has lagged behind the cable industry's roll-out of high-speed Internet service over cable wires. About 250,000 people subscribe to DSL compared to more than a million cable modem users, according to analysts. The FCC's order is expected to be adopted at a public meeting next week but could be delayed at the last minute. Itwould likely set a price for carriers wanting to split a line with a major carrier. Major carriers were seeking a 50-50 split, allowing competing DSL providers to lease a line for half the charge of the whole line. Competitors sought a more lopsided split with a data discount of as much as 90 percent. REUTERS Rtr 17:14 11-11-99 Copyright 1999, Reuters News Service

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