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Technology Stocks : USRX . . . New Technology

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To: John Dickinson who wrote (9)11/3/1996 1:49:00 PM
From: Dan Ross   of 35
 
To all:

I've learned alot about ADSL and ISP's needs over the last couple of months.

However, on tuesday or wednesday this week, I read an article in the Houston Chronicle about internet traffic messing up the local telcos switches.

The story said something like "avg phone call on internet is 31 min vs 3 minutes on normal phone."

They then said that NT (Nortel) and Lucent were really well positioned to help companies such as PACTEL, NYNEX, BELL ATLANTIC, and SOUTHWESTERN BELL.

It seems to me, being completely honest, that USRX unfortunately will not benefit alot with higher speed modems. They are in a commodity business now.

I spoke with some people I know in the telecom industry and they said that they are currently rolling out products to telcos which directs traffic straight past the local telcos to the internet service provider allowing trunk space to be freed up at the telco. end of the business.

If you do this, all that is now needed is MODEMS & an INFRASTRUCTURE with more BANDWIDTH. This is where the future is! Information traveling in a single stream in packets can only be increased so much. Basically, the marginal benefit is close to nil since the software and info. being transmitted is being sent in larger files and increments. If you send info. both ways, receiving and transmitting, simultaneously your speeds dramatically increase.

All and all, I believe that the marginal increase in bandwidth is far greater than the marginal increase in transmission speed.

For a simile, continue reading.

CARS - You increase HP by adding bolt-ons - air filter, pulley, headers, belt, fuel intake etc.

The only problem is that you can make your engine as fast as you want it, but the exhaust system doesn't allow for that true power to be seen since the catalytic converters and increased backpressure will not allow for most of the horsepower to get to the tires.

Please let me know if I'm going the right direction with this one guys.

Dan Ross
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