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Technology Stocks : Rhythms NetConnections Inc. (RTHM)

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To: DD™ who wrote ()11/20/1999 7:59:00 PM
From: SOBANO TIEM  Read Replies (2) of 378
 
Microsoft looks for DSL partner
November 19, 1999

By Kathleen Cholewka

NEW YORK. 5:15 PM EST-As the digital subscriber line (DSL) market heated up this week after the favorable ruling from the FCC that allowed greater competition among carriers in the consumer market, Microsoft (nasdaq: MSFT) was drooling.

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Microsoft has been active in the broadband market, investing in the quickly growing DSL-centric competitive local exchange carriers. Most notably, the company took a $30 million minority equity stake in Rhythms NetConnections (nasdaq: RTHM).

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According to Kroll, Microsoft will make strong partnering efforts to offer DSL through the regional Bell operating companies, as well as national carriers such as MCIWorldcom (nasdaq: WCOM).

While the telecommunications market is dominated by Sun Microsystems, Microsoft still wants in and has been trying to get its operating system trusted in the telecom networks. In fact, Microsoft has made gaining market share in the telecommunications market one of its core goals, hoping to make its Windows 2000 operating system the leading platform in service providers and carrier networks. And while that idea still garners giggles in carrier circles, Kroll says, Microsoft is more serious than ever about making its mark in telecom.
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