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Technology Stocks : ADSL, ISDN, and the future.

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To: Tony Farinholt who wrote (107)7/26/1996 6:28:00 PM
From: jttmab   of 198
 
I don't necessarily disagree with your conclusion, but there are some differences from the ISDN model. With ISDN the ISP also has a large cost with the purchase of ISDN modems in addition to the RBOC in the case of ADSL the RBOC picks up the infrastructure cost. I would suspect that the lease rates would be cheaper, especially consider maitenace costs than that of maintaining an ISDN pool. The connection from the RBOC to the ISP is probably via a, e.g., T3 connection which the ISP already has for connection back to the internet. Of course the ISP will lease ADSL service from the RBOC and I don't even have a guess what that might be....Another difference is the tariff issue; ADSL service isn't expected to be timed service.

Also, it seems like the RBOCS are being a lot more agressive on ADSL service than they ever were with ISDN, perhaps because of the Telecommunications Bill. Remember the spell out of the acronym ISDN....I Still Don't Need (ISDN) it. ISDN was deployed when very few people cared about the extra bandwidth. It's only in the last year when bandwidth is emphasized so much and 128K isn't enough for the demands of VOD and multimedia.....

Jim
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