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Technology Stocks : @HOME IPO
ATHM 24.21-3.9%3:11 PM EST

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To: Timothy Liu who wrote (155)6/19/1997 10:33:00 PM
From: Jon Tara   of 383
 
Timothy, if you simply do the math, you will see that there is no bandwidth problem as the result of the shared medium.

Cox has built to 1000 homes passed. I have been told that they intend to upgrade to 500 homes passed at some point in the future.

What "1000 homes passed" means, is that there is a "node" for each 1000 homes that the cable "passes". The 1000 does not represent subscribers, but simply homes, which may or may not contain cable customers or @Home subscribers.

Let's assume that Cox keeps good on their promise to build to 500 homes passed, and also assume a VERY optimistic penetration of 50%. The same numbers would apply at 1000 homes passed with 25% penetration. 25% penetration would have @Home investors dancing in the streets.

500 homes x 50% penetration = 250 subscribers/node.

Let's assume 50% usage during the peak hour. I think that this number is high, but perhaps not TOO high. (Probably closer to 25%.)

Downstream bandwidth is 26Mbit/sec. Because downstream is unidirectional, there are no collisions as on Ethernet, so we can count on the full 26Mbit/sec being usable. (There is no doubt some protocol overhead which should be subtracted, but I will ignore this for purposes of this discussion.)

(Each user can only get a maximum of 10Mbit/sec, due to the Ethernet card speed, but the speed on the cable is 26Mbit/sec).

Now, let's make one more terribly unrealistic assumption - that all of the users on during the peak hour will be downloading, full-bore, continuously.

What do you think? Gonna be pitiful, right?

OK, we've got 125 peak users (500 homes x 50% penetration x 50% usage at peak) sharing 26Mbit/sec. 26Mbit / 125 = 208,000 kbit/sec, or about double 2B ISDN.

As a practical matter, users will probably see many times this speed at peak, because my number for penetration is probably overly-optimistic, and my numbers for the # of users at peak and the user load (e.g. 1.0) are overly-pessimistic.

If people are just doing typical web browsing (not downloading the latest 100MB mega-killer game) their load on the system is going to be insignificant. (e.g. 10% load would probably be on the high side for web browsing, so now at peak you are looking at 2Mbit/sec. Better than having a dedicated T-1.)

Me, I'm still squeezing even more unbelievable speed out of this thing through upgrades to my PC. First was an upgrade to a hot PCI Ethernet card. Then, an upgrade from Windows 95 to Windows NT. (NT does TCP/IP networking MUCH faster than 95, and the difference is QUITE noticible when you are using a cable modem.)
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