[Interopt follow-up report]
May 12, 1997 10:00 AM ET DSL catches the eye of telcos New deals could help deployment of high-speed technology By Scott Berinato in Las Vegas
High-speed DSL technology emerged from NetWorld+Interop here last week as the clear favorite for future IT broadband connectivity. And it will gain more momentum over the next few weeks.
Hayes Microcomputer Products Inc. will announce this month an agreement with Alcatel Data Networks Inc. and Pacific Bell Communications Corp., under which Hayes and Alcatel will supply PacBell with DSLAMs (Digital Subscriber Line access multiplexers) and customer premises equipment for a forthcoming DSL service.
ayes, of Norcross, Ga., and Alcatel, of Richardson, Texas, have similar deals in the works with Southwestern Bell Corp., Bell South Corp. and Ameritech Corp., sources said. Officials from Alcatel and Hayes declined to comment.
Getting telephone companies to put aside space in the central office for DSL, which transmits data at rates from 1.5M bps downstream and from 128K bps upstream, will knock down a major barrier to the technology. DSL vendors believe the telcos have been hesitant to make such a move for fear of cannibalizing profitable T-1 and analog line services.
PacBell will announce plans this month to begin ommercial DSL service for its regional customers by the third quarter, said sources familiar with the deal.
Although pricing has not been set, sources said the PacBell service could come in at less than $2,000 per line. Such pricing will likely slow widespread deployment; however, prices are expected to drop over the next year.
Other companies are jumping into the DSL mix as well. U.S. Robotics Corp., which will ship its first DSLAM product this month, will release the second generation of the product next month at SuperComm, in New Orleans.The new version promises to deliver DSL for $1,000 per line or less.
The Skokie, Ill., company's second DSLAM release will include ATM interfaces as well as a two-port DSL card. The current version features a single-port asymmetric DSL module.
These are the first of a monthlong barrage of announcements by major internetworking vendors committing to DSL, analyst Vern Mackall said during a presentation at NetWorld+Interop.
But Mackall and fellow analyst Brad Baldwin, both of International Data Corp., in Framingham, Mass., preached temperance while praising the technology's potential.
Issues that remain to be worked out, besides standards, include what flavor of DSL makes sense and what architecture to use. For instance, should DSL be carried over ATM lines? In addition, vendors and corporate sites have yet to address infrastructure issues, because real-world tests of the technology have been so limited.
Users want the bandwidth, but given their trepidation with nonstandard 56K-bps modems, it's unlikely that conservatism will change with DSL, Mackall added. One user said he would need extremely compelling arguments to install DSL today. "I want real standards, not advertised standards," said a senior programmer at a major computer company. "From the corporate point of view, [adopting DSL] is expensive. The bandwidth is tempting, but I can get dial-up service for $8 a month." |