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Technology Stocks : Ascend Communications (ASND)
ASND 199.01-1.6%3:10 PM EST
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To: blankmind who wrote (35255)2/19/1998 12:13:00 AM
From: George T. Santamaria  Read Replies (1) of 61433
 
I think that you have missed the central point of my argument.

Let me restate it just in case you haven't read or undersood what I had said earlier.

What I was trying to say is that cable companies have an inherent cost advantage because the total infrastructure of a twisted-pair telephone network is inherently more expensive to install and maintain than a coaxial cable network.

This is primarily because there are thousands upon thousands of connections that have to be maintained in numerous cable splices between the central office and the customer. On the other hand, the cable service can be delivered to hundreds, if not thousands of customers over a single coaxial cable with taps or splitters at each customer's service drop.

Telephone cables are old and getting older. As a consequence of their age and cost to install, your monthly charge, no matter what DSL technology is employed, will be the same or increasing with time.

Let me bring out an analogy. Consider what it would be like if your electric Co. had to route an individual pair of 110V wires for each customer for a distance of several miles to a substation. Furthermore, imagine each pair had to be labeled and identified through each junction in the route. I don't think that people fully appreciate how revolutionary the idea of routing information electronically over a cable network to each consumer/ customer is. Seems like everyone but the phone company routs their data communications now.
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