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Technology Stocks : Diamond Multimedia
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To: Jonathan Quick who wrote (793)10/6/1996 2:10:00 AM
From: Marshall   of 4679
 
Jonathan, you can put that Alcatel story into the "Year 2000" file, there is no more expectation that we will see this on any broad basis than any of the other xDSL speed technologies.

The telco's DO NOT, I repeat DO NOT, want to allocate any more bandwidth to anyone unless they can charge accordingly. A T1 line only runs at 1.544 Mbps but they can get 24 individual line circuits on it and charge $15 apiece for them ($360 total) or they can lease the entire T1 outright as straight 1.544 access for a little less. Another truth to the whole matter is that they are already somewhat squeezed for bandwidth is many areas of the system, adding any sort of "super access" like this would certainly cost them a lot more in the long run.

If you have any doubts about this, find a senior Bell engineer. I don't mean one of the new ones that have all the dreams, but a very well-seasoned one that makes most of the decisions. He will likely tell you that implementation of any of these higher-bandwidth services do not make economic sense at the time. If he's really honest he may tell you that most of these "trials" are just that - they are learning from them as well as keeping the public barely on the edge of satisfaction since it appears that they are moving that way.

Even though ISDN is much like getting two lines for the cost of four to the customer the telco's don't like it either. They made a great mistake a while back by offering it at a flat rate when they should have made it billable by access time. People only want it for modems, and when they get it they tend to tie up that big chunk of bandwidth for hours and hours day after day. They currently have no way around this in the RBOC world of things as the business is highly regulated by the various corporation commissions.

I wouldn't exactly say that any of the modem manufacturers are copying anything, all they are doing is putting someone else's chipset on a board with the common interface components.
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