Montgomery likes WSTL too.
SAN FRANCISCO--(BUSINESS WIRE)--Oct. 3, 1996--Technology to
provide Internet users with faster access to the network is quickly
being developed and two technologies -- one utilizing the existing
cable network and another to speed data over the existing telephone
network -- appear to be the most likely to win the race, according to
Montgomery Securities Senior Research Analyst Christopher Crespi.
Crespi outlined his view of this fast-developing industry in a
presentation to investors at Montgomery Securities' 26th Annual
Investment Conference, being held in San Francisco this week. The
conference, featuring 233 of the nation's leading growth companies
making presentations to growth-oriented institutional investors, is
the largest investment conference dedicated exclusively to growth
companies.
Ultimately, Crespi said, the fundamental question for this sector
is, "Which technology will get us the higher bandwidth so we don't
have to wait so long to get our Web pages downloaded?"
The two highest speed methods of transmitting Internet data
currently available are conventional modems that receive data at 28.8
kilobits per second (kbps) and ISDN telephone lines that deliver
information at 128 kbps - both of which are too slow to transmit the
increasingly graphics-laden data being developed for transmission
over the Web.
Crespi focused on two technologies -- cable modems and
Asymmetrical Digital Subscriber Lines (ADSL) -- that he believes are
the most likely to be adopted to upgrade the existing
telecommunications infrastructure and reduce the bandwidth bottleneck
now plaguing Internet users.
Cable modems, Crespi said, offer several advantages: the initial
cost to upgrade each subscriber is relatively low, and the modems
will offer subscribers transmission speeds of as much as 1.5 to 2
megabits per second (Mbps) -- or as much as 70 times faster than
current 28.8 kbps modems.
On the downside, however, only 20 percent of current cable
systems can carry two-way communications, so cable companies will
have to make a substantial investment in upgrading their cables to
utilize these modems.
ADSL, on the other hand, works over the existing telephone
network and dramatically increases the speed with which the networks
can transmit data. ADSL systems are designed to maximize the ability
of the network to download information to subscribers -- at initial
speeds of as much as 1.5 Mbps -- while uploading information at a
more conventional speed of 64 kbps.
Crespi noted that this isn't a problem, since most Internet users
send only small amounts of information through the Internet to
request information, while downloading massive amounts of data. The
large regional telephone companies are actively working with ADSL
equipment makers to roll-out this technology.
Crespi predicted that these technologies will be used by 100,000
customers each by yearend, with a steep ramp-up predicted by yearend
1997.
Crespi's recommendations in this sector include Westell, the
leader in ADSL equipment; Uniphase, a leading optoelectronic
solutions supplier; and Stanford Telecommunications, which makes
cable modem technology.
Montgomery Securities is one of the nation's premier investment
banking and institutional brokerage firms. Dedicated to growth
companies, Montgomery combines focus and specialization in Research
and Investment Banking with bulge-bracket capabilities in Global
Distribution and Large-Block Trading. |
