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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)
FTEL 0.727+8.4%3:02 PM EST

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To: topwright who wrote (13169)7/11/1997 10:53:00 AM
From: Stephen B. Temple   of 41046
 
rb: If the statement is made: "That will mean added savings as the telcos replace T1 circuits with HDSL2 devices."
Does this mean that certain characteristics of Franklin Products will need to be updated on the termination side, or is the product development now so that a two pair verses a single will not show a difference on connecting.? I have "yet" to figure this one out.

HDSL2 over single twisted-pair eyed

Silicon Valley- Three chip and equipment suppliers will go before the ANSI
T1/E1.4 committee in Chicago this week with a proposal for
second-generation High-bit-rate Digital Subscriber Line technology
(HDSL2) that promises to deliver T1 performance - but over single
twisted-pair wiring. Current-generation HDSL requires two sets of
twisted-pair wiring.

ADC Telecommunications Inc., Minneapolis; Level One Communications
Inc., Sacramento, Calif.; and PairGain Technologies Inc., Tustin, Calif.,
believe they can accelerate development and deployment of HDSL2-based
solutions. The three have pooled their resources over the past year.

"We wanted to avoid the kinds of line code wars you see in ADSL today,"
said Mike Rude, a senior project engineer at ADC. Executives from all
three companies said that if all goes well at the ANSI committee meetings,
ADC, Level One, and PairGain could deliver HDSL2 silicon and systems
equipment by the second half of 1998.

The big winners in the HDSL2 business will be the regional Bell operating
companies (RBOCs) and other service carriers. HDSL2 promises to deliver
T1 (1.5-Mbit/s) performance with the same robustness, reach, and spectral compatibility as today's HDSL but over a single twisted pair.

**** That will mean added savings as the telcos replace T1 circuits with HDSL2 devices.****

"Unlike other varieties of xDSL technology, which today ship only to limited
test markets, HDSL found a viable and growing business in replacing
traditional T1 circuits several years ago," said Gerry Kaufhold, a Dayton,
Ohio-based analyst at In-Stat Inc. "HDSL is much more robust than
traditional T1 devices. So the telcos have looked to HDSL devices to
dramatically cut the overhead costs of maintaining their T1 services. A lot
of T1 users don't realize they are using HDSL today."

Delivering HDSL on a single twisted pair rather than two twisted pairs
means even more cost savings, he added.

"The move to single twisted-pair wiring will also help service providers
avoid copper congestion - spot shortages of twisted-pair wire - that creates
backlogs in delivering new lines," said George Zimmerman, chief scientist at
PairGain, a transmission-equipment maker that has also developed its own
HDSL chip set.

Initially HDSL2 will fall directly into HDSL's business slot, the T1
replacement business, said Dan Cordingley, Level One's director of
marketing. "Eventually, though, it will also compete for residential business
against ADSL. We see HDSL's advantage in the fact that it is symmetric -
it delivers 1.5 Mbits/s in both upstream and downstream directions."

ADSL, or Asymmetric Digital Subscriber Line technology, delivers
anywhere from 1.5 Mbits/s to 9 Mbits/s downstream and only 176 Kbits/s
to 640 Kbits/s upstream.

HDSL's leg up is that it already has a real market, according to In-Stat's
Kaufhold. "But don't get too excited about xDSL technologies just yet," he
cautioned. He said that the RBOCs and other local exchange carriers are
waiting for the Federal Communications Commission and state public utility
regulators to open their lines to competition from AT&T Corp. and other
long-distance carriers in a year's time. And the local exchange carriers are
in no hurry to invest in racks of new, high-speed equipment for their central
office switching sites until that competition problem is worked out.
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