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Technology Stocks : InterSpeed Inc-(ISPD)
ISPD 0.00Mar 7 4:00 PM EST
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To: TH who wrote (188)12/30/1999 8:02:00 PM
From: Stephen Yarger  Read Replies (1) of 223
 
Well, you're right, this does represent a problem if we consider that part of our target market. Although some DSL equipment can be "mixed and matched", Interspeed's equipment does not lend itself to such installations. Because Interspeeds equipment is an all in one solution it is unlikely that an established ISP or telco would use the equipment to "add on" to existing systems.

However, I don't really see this as a problem. Remember that Interspeed's primary customers will be ISP's, telco's, and MTU owners setting up new DSL service in smaller markets. For these new installations Interspeed's products have a significant price advantage over the competition. Interspeed is not trying to become the equipment of choice for large metro areas that already have existing DSL service. At first this may seem to be a disadvantage, but I think it is one of the reasons Interspeed is well positioned for huge revenue growth. Most of the other DSL equipment makers are focusing on equipment designed to serve large metro areas and as usual these companies have ignored the needs of the smaller markets that have less money to spend.

These smaller markets still represent an enormous number of people throughout the US and Europe who are desperate for higher speed Internet access. The Internet is supposed to be the great equalizer, allowing the consumer and the small business to compete from where ever they are on a global scale. This will not actually be possible until high-speed Internet access is available to the small businesses and consumers located in the smaller markets.

Interspeed has recently been focusing on Europe because in Europe there is even less competition. Not only are Interspeed's products the best solution for the price, but since there is not a wide spread base of coax established for cable TV. reception, DSL is the only broadband choice until everyone rewires with fiber-optic cables (which won't be for a long, long time).
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