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Technology Stocks : Ascend Communications-News Only!!! (ASND)
ASND 212.11-2.3%1:12 PM EST

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To: Maverick who wrote (758)12/15/1997 11:38:00 PM
From: Gary Korn   of 1629
 
12/15/97 Inv. Bus. Daily A8
1997 WL 16961300
Investor's Business Daily
Copyright Investor's Business Daily, Inc. 1997. To Subscribe Call (800) 733-
8900.

Monday, December 15, 1997

Computers & Technology Will Shotgun Modem Hit The Mark?
Nick Turner

Long live analog.

Once deemed hopelessly slow by Web surfers, analog modems should
be getting another speed boost. Diamond Multimedia Inc. and others
have technology that could double modem speeds.

Current analog modems can access the Internet at nearly 56
kilobits per second. That's much speedier than the 14.4K and 28.8K
modems of a few years ago. But Web content is increasingly complex.
Many consumers still face long waits on the Net.

That's led users to look for alternatives to analog modems. So
far, the other options aren't that attractive. Installing an ISDN -
integrated services digital network - line boosts speed
significantly, but is costly. Other speedy technologies, such as
cable modems and digital subscriber lines, require providers and
users to make equipment upgrades to move from the analog phone
language to digital computer language.

Until this new digital equipment is ready, Diamond and others
figure they can spruce up analog connections.

"Analog will be the overwhelming method for getting onto the
Internet for the next few years - maybe even the next 10 years," said
Lisa Pelgrim, an analyst at market researcher Dataquest Inc. in San
Jose, Calif.


Diamond, also based in San Jose, last month unveiled a modem
technology called Shotgun. It plans to start selling the SupraSonic
II with Shotgun technology in the first quarter of '98. It will use

existing phone lines to provide speeds of up to 112K.

Boca Research Inc., a maker of communications products in Boca
Raton, Fla., recently announced a similar technology.

There is one catch: Users will need two phone lines for these
products to work.


Shotgun equipment and ISDN technology work in much the same way.
Both bond two separate lines to generate faster access speeds. ISDN
combines two digital lines transmitting data at 64K each. That
provides users with speeds of up to 128K.

Shotgun technology combines two normal analog phone lines with 56K
connections, creating the 112K speed. While few Web surfers have
ISDN lines, many have two phone lines. So the technology should be a
good fit, say Diamond officials.

"We expect it to take off very quickly," said Diamond Chief
Executive Bill Schroeder. "The infrastructure's there; we're just
taking advantage of it."


Indeed, 22% of U.S. homes already have second phone lines, says
Pelgrim. But do Web surfers really want to tie up both their phone
lines at once? That won't be a problem, Schroeder says.

Diamond's Shotgun technology has a feature called "voice
priority." The second line automatically disconnects from the
Internet if users are making or receiving phone calls.

Will Shotgun truly achieve speeds of 112K? Probably not. Due to
Federal Communications Commission regulations, 56K modems can receive
data at no more than 53K. Noise on phone lines also reduces speed.
Shotgun equipment faces these same limitations, but it still may
double current access speeds.

Diamond's SupraSonic II will cost about $200. Users also can
obtain Shotgun speeds by adding a conventional 56K modem to their
current modem and installing Shotgun software. That will cost less
money but won't provide the voice-priority feature.

Shotgun requires that Internet service providers have Ascend

Communications Inc. servers, which use a standard called Multichannel
Plus Protocol. Most ISPs already use equipment from Alameda, Calif.-
based Ascend.


ISPs likely will charge more if you use the Shotgun service, but
it's hard to say how much. It may depend on how much the second line
is active.

The similar technology from Boca Research works a little
differently. Its 112K DynamicDuo modem, which it plans to ship this
month, also uses two separate phone lines, but it doesn't bond them
the same way. It would require users to buy two ISP accounts.

Furthermore, the speed of the DynamicDuo system depends on the
type of Web content that it's downloading. With certain Web pages,
users might not notice a big speed difference.

To take full advantage of DynamicDuo, users will need ISPs that
support K56flex - one of two modem standards vying for acceptance.
When connecting with non-K56flex ISPs, the two modems in the
DynamicDuo system will each fall to speeds of 33.6K. That means

users will achieve a rate of no more than 67.2K.

Other companies also hope to get a piece of the high-speed modem
pie. Transcend Corp., the Rockledge, Fla.-based unit of Brazil's
Digitel, has developed a 67K modem. The system requires both the ISP
and the user to buy Transcend's technology.

Other players likely will emerge. "I fully expect all the major
modem players to have an offering," Pelgrim said.

---- INDEX REFERENCES ----

COMPANY (TICKER): Boca Research Inc. (BOCI)

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