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Technology Stocks : COMS/USRX
COMS 0.00220+100.0%Oct 31 9:30 AM EST

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To: Jeffery E. Forrest who wrote ()6/8/1997 7:41:00 PM
From: Jeffery E. Forrest   of 1384
 
U.S. Robotics Sets Cable
Modem Trials in Midwest
Cities
by Bill Snyder, PC World

June 6, 1997
High-speed cable-based access to the Internet is coming to two Midwest
cities this fall. U.S. Robotics has signed agreements with Charter
Communications in St. Louis and Insight Communications in suburban
Indianapolis to give subscribers access at speeds of up to 27 megabits per
second over the operators' existing networks.

USR has not yet priced either the service or the cable modems that
subscribers will need to connect their PCs to the system. However, one
USR executive said that the modems, which will be available at retail
stores, will probably cost about the same as a high-end analog
modem--roughly $300--and will be available in both internal and external
versions. The modems would be far cheaper and far faster than a typical
ISDN setup available today.

The service will use a telco-return architecture, which means that data
moves from the operator's server to the user's home through cable. Data
originating from the home PC, however, will have to travel over the much
slower telephone system. Once operators make the major capital
investment necessary to allow the pipeline two-way capability, upgrading
the rest of the system will be relatively inexpensive, according to USR.

But it may be some time before many homes are ready for more advanced
service. Lisa Pelgrim, an analyst with the market research firm Dataquest,
estimated that only about 15 percent of U.S. homes with cable service are
wired for two-way transmission. She also said that about 80,000 two-way
cable modems are expected to be sold this year.
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