UUNET Enhances DSL Service Revised
Copyright c 1998 TeleChoice, Inc.
March 13, 1998 -- UUNET Technologies, Inc., a subsidiary of
WorldCom, Inc. announced Preferred Access 768, a new
dedicated Symmetric Digital Subscriber Line (SDSL) service
with 768 Kbps bandwidth.
Preferred Access 768 builds on UUNET's previously released
Preferred Access 128 service by offering six times the speed and
capacity.
Preferred Access services use standard copper wires to bypass
congested switched voice networks and eliminate ISDN
installation hassles. The Preferred Access 768 service supplies
bi-directional 768 Kbps bandwidth for Internet access. At this
speed, a color graphic that would take one minute to download
from a website via a 128 Kbps connection would take only 10
seconds to download. Similarly, a connection that supports 10
users simultaneously with 128 Kbps can support 60 concurrent
users with 768 Kbps.
All Preferred Access services deliver the performance of a
dedicated connection at about half the price of a T1 line. Such
price and performance attributes make the service affordable
and accessible for small and medium-sized businesses.
Current Preferred Access 128 customers can upgrade to
Preferred Access 768. By simply switching the customer
premise router, customers can immediately utilize the higher 768
Kbps bandwidth.
Unlike many other DSL offerings, Preferred Access 768 is a
fully integrated Internet access solution with end-to-end service.
In addition to supplying a DSL access circuit, UUNET provides
comprehensive Internet connectivity and related services,
enabling businesses to obtain everything they need from a single
vendor.
Preferred Access 768 includes DNS registration, 20 POP e-mail
accounts, and five NNTP news readers. In addition, customers
receive 24 x 7 monitoring, proactive troubleshooting and
UUNET's business-class customer support. Installation
coordination, including local loop provisioning, is also handled by
UUNET.
Pricing and Availability
Preferred Access 768 is available immediately in New York City
and Silicon Valley. The service will expand to all 54 of
UUNET's existing U.S. DSL PoPs -- the largest number
provided by any ISP -- by the summer of 1998.
Pricing for Preferred Access 768 ranges from $650 to $1400
per month, with no term commitment. Pricing is based on usage.
Customers receive a five percent discount for a one-year term
commitment and a 10 percent discount for a two-year
commitment.
Local access charges range from $150 to $250 per month,
depending on geographic location. The customer premise
equipment (CPE) cost is $399 for Preferred Access 768.
As an introductory promotion, customers who sign up for one
year or longer-term commitments will receive the lowest tier
price ($650) for the first six months, regardless of usage. In
addition, installation is reduced by 50 percent to $1500 and
there is no charge for the CPE.
TeleChoice Take:
UUNET is strengthening its position in the SDSL space with this
upgraded offering aimed at small to medium sized businesses.
This offering replaces their previous Ascend-based 128K
service which UUNET announced with a lot of fanfare, claiming
they were the first nationwide carrier to deploy this type of
service. Distinguishing attributes include a fully integrated
(one-stop shop) solution that is non-oversubscribed. Price
ranges are positioned to protect their current T-1 customer base
by capping the burst capability at 768K ($1,400). This
compares to traditional IXC and local T-1 services at 2x and 3x
the monthly recurring price points respectively.
US WEST found in its deployment experience that no one
wanted 128Kbps, so this is not surprising to TeleChoice. The
SDSL offerings go after the true fractional service speeds where
there is a lot of expense in trying to maintain connectivity with
offices at sub-T1 speeds. Expect more of these speeds from the
national providers.
The additional value-adds (ie; Internet connectivity, domain
name registration, 24x7 customer care, etc.) along with the
outlined promotion should attract both current P.A. 128K and
new small and medium sized customers in the coverage areas
they plan to service.
UUNET has the client base to really push DSL -- wrapped with
all sorts of applications. UUNET and US WEST remain the
ones to watch right now for pushing national DSL deployment in
the U.S.
Deployment of IDSL and SDSL are often based more on the
realities of managing ILEC spectral compatibility issues than on
the ability of the technology to support the customers'
applications. This is what CLECs have to do to get their services
rolled out. As for the appeal of IDSL offerings, who wants
128K at $700/mo.? There is a market for 128K if it is priced
and positioned appropriately. It needs to be marketed for the
value it provides to customers and not as a way to splash into the
DSL market. |
