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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: Duke who wrote (824)1/4/1998 8:13:00 PM
From: blankmind  Read Replies (1) of 1629
 
Carriers slow to use integrated access gear -- Most new IA devices are still in the early stages of development and deployment

Paul Korzeniowski

Managing a multiservice telecommunications network can be a multilevel headache. A carrier needs to install a frame-relay access device (FRAD) to connect a customer to frame-relay services, a multiplexer for lease lines, a channel bank for voice communications, a router for Internet connections and an ATM switch for multimedia services. Managing the hodgepodge of devices can be both time-consuming and costly.

To remedy that situation, public network equipment suppliers have been working on a new generation of network access devices. Rather than devices that work with only one type of service, this new hardware operates like a multipurpose Swiss Army knife: It can connect a customer to a variety of network services. ADC Kentrox, Portland, Ore.; Ascend Communications Inc., Alameda, Calif.; Fore Systems Inc., Pittsburgh; Sentient Networks Inc., Milpitas, Calif; and Vina Technologies Inc., Fremont, Calif., are a few suppliers that have been developing such products.

These integrated access devices offer carriers and customers many benefits, but they are still in an early stage of development and deployment, analysts said. The primary suppliers, many of whom are start-up companies, have been slow to deliver their wares, and carriers have not been as receptive to the products as suppliers anticipated. But this could change in 1998 as vendors get the early bugs out of their wares, analysts said.

Technical advances have made it possible to integrate several functions into a single device. At one time, a router was an expensive, sophisticated piece of network equipment based on proprietary features. Standards have evolved and such devices have matured, so it is now possible for equipment vendors to deliver integrated access systems with starting prices ranging from $10,000 to $15,000.

The new access systems can help carriers reduce operating costs, said Tim Kraskey, vice president of marketing for core systems at Ascend. By consolidating a handful of stand-alone systems into a single system, a carrier can reduce floor space requirements and simplify management.

All bundled up

Deregulation is another force driving interest in the new devices. Traditionally, carriers offered customers individual and separate services: lease lines, Internet access, local service, long distance, etc. Now, carriers want to bundle those service into a complete packaged offering that lets them simplify billing and forge tighter bonds to customers.

A prime example is Intermedia Communications Inc., a competitive local exchange carrier (CLEC) in Tampa, Fla. The company wanted to broaden its reach into new markets such as long-distance services. Lauren Brockman, a senior product manager for local services at Intermedia, said the carrier had been looking for network equipment capable of supporting different service types, but discovered that most devices were designed to work with one type of service.

Then last spring, Intermedia found Vina Technologies' T1 Integrator which includes a channel bank for voice communications, an IP gateway, a multiplexer, a FRAD, a channel service unit/data service unit and an Internet firewall. Intermedia tested the system in August and found it was simple to install and operated as advertised, Ms. Brockman said. The company now has half a dozen customers taking part in the first wave of its SingleT service, a bundled service supported with the Vina product. Ms. Brockman predicted more than 100 customers would be using the service by the end of 1998.

Founded in 1996, Vina first focused on T1 access. "Traditionally, it has taken carriers longer to roll out new services-ISDN [and] frame relay-than initially anticipated. Consequently, we don't think leading-edge technologies like ATM will make it out to the edge of the public network for a couple of years," said Vina president Josh W. Soske.

Competitors such as Ascend, Fore and Sentient disagree. Robbie Forkish, vice president of business development at Sentient, said many carriers have already adopted ATM in the core of their networks and now would like to push it out to the edge. "Adopting ATM from the customer premise to the core would enable a carrier to reduce operating costs and offer more sophisticated services, such as quality of service," he said.

Slowly they turn

Despite such benefits, carriers have been slow to adopt the new access products. One reason is because telecommunications sales cycles can be excruciatingly long. "Many carriers still have the regulated-industry mind-set and do not move as quickly as companies in other industries," said Vina's Mr. Soske.

Carriers are usually unwilling to take major risks when it comes to new products. Because their services require universal availability, they are often leery of incorporating new technology in their networks. "These companies are cautious and often only feel comfortable when dealing with established products with long lists of reference accounts," acknowledged Mr. Soske.

Many of the new equipment suppliers are start-up companies without much of a track record. "Sometimes it isn't as easy for us to get our foot in the door as we would like," admitted Sentient's Mr. Forkish.

Some established equipment suppliers do not see much need for the new access devices. "These companies are just delivering enhanced routers or FRADs. The talk of a new generation of access systems is just marketing hype," said Ashare Baig, a product line manager at Ascom Timeplex Inc., a Woodcliff Lake, N.J., network equipment supplier.

That claim may be overstated. Jennifer Pigg, vice president for data communications at the Yankee Group, a Boston-based market research firm, said there are differences between the newer products and those from established vendors. "These vendors have made significant investments in their ASICs [application specific integrated circuits], so a lot of their routing can be done with software," she explained.

The result is that network changes are simpler to make. When a company changes its network services these days, a hardware change is often required. The carrier may have to reconfigure software, move cables, swap multiplexer channels and add new cards to the device. The process can take anywhere from a few days to a few weeks. With the new devices, changes can be made via software and can be completed in only a couple of hours.

Still, not all suppliers see a need for new devices. "How often will a user need to change from a lease line to a frame-relay service?" asked Adam Lourant, an assistant vice president of product management at Newbridge.

While the access systems are targeting a need, carriers may be looking at other issues. "With networks becoming more complex, carriers want to limit the number of suppliers they deal with and work with companies that offer a strong line of products rather than a target solution," Mr. Lourant said.

Not surprisingly, the smaller companies have a different view. "Carriers have the networking expertise needed to work with multiple vendors and are willing to work best-of-breed products," said Sentient's Mr. Forkish.

But to date, they have been moving to these new systems at a slow pace. Right now, Vina has about half a dozen customers. Sentient is also working with only a couple of carriers. Only Ascend claims to have shipped hundreds of its access units.

Despite the current problems, there are reasons to expect that sales of the new products will pick up in 1998. "These new access devices have the potential to help carriers cut their operating costs," Ms. Pigg said. "Once the suppliers convince carriers their products operate as advertised, I expect sales of these systems will rise significantly."

Paul Korzeniowski is a free-lance writer in Sudbury, Mass., who specializes in networking issues. E-mail reactions to this article to telepath@cmp.com.

Copyright (c) 1998 CMP Media Inc.
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