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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 689.17+0.2%Dec 11 4:00 PM EST

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To: Johnny Canuck who wrote (25278)2/23/2000 2:01:00 AM
From: Johnny Canuck  Read Replies (2) of 68981
 
Message 12867073

Re: US Residential Broadband Stats

Thread-I picked up the following figures from my recent issue of
Telecom Investor magazine. They come from a report out of Parks
Associates and Allied Business Intelligence. IMHO, of most importance
to last mile investors is the almost dead even distribution between DSL
and cable modem, with a slight penetration of satellite and fixed wireless
access. These ratios are exactly how I'm attempting to distribute my
overall investment portfolio.

Kind of interesting they are predicting a $4.7 billion market by 2005 for a
product that doesn't even exsist yet. -MikeM(From Florida)

*********************************

-PCs will be in 71% of US homes by 2004.
-As of Sept 99, 1.3 million US homes had broadband access.
-Cable modems access claimed 1 million of the 1.3 million.
-Internet access is in 39% of US homes in 1999.

-Interent access will be in 67% of US homes by 2004.
-24 million US homes will have broadband by 2004.
-The 24 million figure represents 34% of homes online.
-The 24 million figure will generate 50% of access revenues.

-47% of the 24 million homes will have cable modems.
-45% of the 24 million homes will have DSL.
-8% of the 24 million homes will have sat/fixed wirelesss.

-"Residential Gateways," hardware will reach $4.7 billion in spending by
2005.
-The US is expected to lead the Residential Gateway deployment with a
59% increase from 2002-2005.
-Europe will deploy, "Utility-centric Gateways," with a 64% increase in
shipments between 2002-2005.
_____________________________

Here's some links to past stats for future reference before they fall out of
search engine reach:

1999 US Internet Access Stats(all types):
siliconinvestor.com.

1999 US Cable Modem vs. DSL Stats(apparently they messed up):
siliconinvestor.com.

Germany's Deutsche Telekom and Britan's NTL cable plant stats:
siliconinvestor.com.

AtHome and T's cable stats(which were too high):
siliconinvestor.com.

Message 12917634

Cable vs DSL, Top 10 Myths

I was browsing a local portal and stumbled across this article. The portal
is owned by Cox Communications, a major cable provider here in
Orange County California.
ocnow.com

Fact or Fiction...Well this could depend on which side of the fence you
are on. IMO, which side really does not matter, for we all know who
owns the fence.

If a cable company with 62,000 subscribers wants to allow one percent
of their subscribers to simultaneously connect to the Internet at 10 Mbps,
they would need an "OC12" connection to the backbone. Game, Set and
Match...

Myth 1

Cable and DSL services are comparable.

Fact: DSL typically is not as fast as cable. Depending on the DSL
provider, speed can range from 128K to 7MB per second. Cable speed
ranges from 400K to 10MB per second. Service levels for cable depends
on the cable system operator and whether the access is for residential or
community, but typically, cable has more bandwidth available than DSL.

Also, Many homes and businesses can't get the higher speed DSL service
because they are too far from the telephone companies central office.
DSL can't maintain high-bandwidth speeds past distances of roughly
18,000 feet. Cable has no such restrictions.

Myth 2

DSL connections are "dedicated" and cable is "shared." More users on a
cable system network equals slower service speed.

Fact: The only dedicated portion of the DSL circuit exists between the
home or business and the telephone companies central office. Beyond
that, DSL subscribers are then on a shared telephone company network
which in turn is connected to an ISP that is shared with all other ISP
subscribers before being transmitted to the Internet. Therefore, DSL and
cable both provide shared access to the Internet - just in different ways.

"Shared versus dedicated" really asks: What is the overall performance of
the Internet conncection? Cox is one of the largest cable broadband
companies and is a leader in providing cable Internet services. Several
factors contribute to their success.

1. Cox's cable network has recently been rebuilt and is designed with
growth in mind. Cox can easily expand available bandwidth to meet
increasing customer demands.

2.High-performance proxy/cache servers reduce the need to retrieve
popular website pages from the Internet, further enhancing the user's
online experience.

3.Cox customers are connected to the Internet via a nationwide,
high-speed, private Tier 1backbone. This means that Cox cable users
suffer less net congestion than some DSL providers who connect through
Tier 2 or below ISPs. Tier 2 ISPs connect to the Internet via Tier 1
providers which reduces the speed and capacity of the Internet
connection.

Myth 3

Because cable customers are using a "shared" network, one user can
more easily tap into the data stream of another local customer.

Fact: Cable networks are no less secure than phone networks. Currently,
many cable systems use proprietary technology, which is very difficult to
reverse engineer, and that would be the only way to eavesdrop on
another customer's data conversation. This would be a highly unlikely
scenario.

Furthermore, Cox will be upgrading its cable systems to support DOCSIS
(Data Over Cable Service Interface Specification)-compliant cable
modems and equipment. This means that Cox will guarantee user data
privacy through encryption, or more simply, Cox guarantees there will be
no eavesdropping.

Myth 4

When cable is delivering video, voice and data at the same time, the
cable modem user will suffer from "congested" bandwidth, unlike a DSL
user.

Fact: Cable companies can assign dedicated frequencies for each video,
voice and data service without conflict. Cox's Network has a 750MHz
capacity compared to telephone lines that are limited to approximately
1MHz of bandwidth, which must be shared between voice and data
services. With cable, you can watch TV, talk on the phone and browse
the Net simultaneously without impacting any individual service.

Myth 5

Cable services are less reliable than the data services of a telephone
company.

Fact: Cox's cable services run over a redundant network. There are
multiple paths for data to travel to a user's home or business on Cox's
cable network. If one path should break, user traffic can continue to flow
uninterrupted across another redundant path.

Myth 6

When looking at price and performance, DSL is the obvious choice.

Fact: When compared to other high-cost services, DSL does offer price
savings. But cable offers a surprisingly low cost per user, typically lower
than DSL. And, cable connection speeds typically start where DSL tops
out.
Also, the price quoted for DSL service often does not include the cost for
an ISP's Internet access and features such as email. To accurately
compare DSL versus cable you must combine the extra costs for an
Internet connection and email. With Cox@Home and Cox@Work the
cost of Internet access is built into the monthly pricing, unless otherwise
indicated.

Myth 7

DSL service allows its customers to choose their own ISP; cable doesn't.

Fact: Most DSL customers cannot choose an ISP other than one that is
already packaged with the DSL service. Cox provides its home
customers with the ability to access the content of other ISPs in addition
to Excite@Home's broadband designed content.

ISP content and services delivered by the DSL provider are typically
designed for 28.8K or sometimes 56K modems, in order to
accommodate their most common users. Cox is optimized for
high-bandwidth use.

Myth 8

DSL is a new digital connection technology.
Fact: DSL technology was created to squeeze more speed and capacity
out of existing copper telephone wires. Much of this wiring system was
installed decades ago and was designed for low-speed, low-capacity voice
communications. In contrast, cable architecture is relatively new and
does not rely on the local telephone network.

Myth 9

DSL is widely available today, because it's based on an existing network
that reaches most homes and offices.

Fact: DSL services are not widely available for several reasons.
Telephone companies must install new equipment at their offices,
establish connections to ISPs and upgrade copper circuits to a home or
business. And then there are obstacles that either delay or prevent these
circuits from being used to deliver DSL service, such as bridge taps,
changes in wire gauge and the presence of "cross-talk," a type of
interference between signals on telephone lines.
As stated in Myth #1, the distance from a home or business to the
telephone company's central office dictates the level of service a
customer can receive. Only if a customer is within 18,000 feet will the
optimal connection speed of 7MB per second be possible. Past that,
connection speeds drop dramatically to just 64K per second, or less.

Myth 10
High-speed cable connections aren't widely available, since most cable
networks have not upgraded their systems for two-way communication.

Fact: Cable reaches far more homes than does DSL at this time.
According to the Yankee Group, Year-end projections for cable modem
subscribers in 1999 was expected to pass 1 million, compared to 250,000
for DSL users. Additionally, 25 percent of U.S. homes were projected to
have cable modem service available by the end of 1999 compared to 10
percent for DSL. At year-end 2000, those numbers are projected to
increase to 43 percent for cable modem ready U.S. homes and 20
percent for DSL ready U.S. homes.

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