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Technology Stocks : Ascend Communications (ASND)

ASND 204.41

-1.0%

Nov 14 9:30 AM EST

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To: Bald Eagle who wrote (31340)	1/20/1998 11:38:00 PM
From: Matt Webster	Read Replies (2) of 61433

Random Thoughts on DSL and How Networkers Can Manage the "Problem"... The problem is that telco's are not interested in DSL service at $50/month replacing T-1 and high-end frame relay service at $1500/month. This is the same issue ISDN faced, as ISDN at $50/mo was not going to make telcos who sold Switched 56 at $300/mo look good. The solution is to make DSL into a differentiable "consumer" technology. The telcos would be happy if DSL was not routable by default, meaning that it would not be possible to sit a router between a private LAN and a cheap DSL connection to the Internet, like can be done now with ISDN. All PAIR or whoever would need to do is cooperate with the RBOC's so that DSL service would not be cost effective to enterprise customers. If enterprise customers wanted a DSL router, then they would have to pay extra for that quality of service. There is no reason to think that RBOC's could not cooperate with networkers. Discriminatory pricing is not new to RBOC's, after all. This is the obvious answer to the RBOC dilemma. Any comments? Matt

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