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Technology Stocks : USRX . . . New Technology

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To: Dan Ross who wrote (16)	11/6/1996 5:57:00 AM
From: Larry Holmes	of 35

Dan: "This problem is the biggest problem facing the telco industry right now & big $$$ will be spent on this product. With the internet growth rate growing at > 100% each year, telcos are getting hosed up at the local level and are seeking to eliminate the problem before it becomes a major problem & people can't make normal phone calls." I was wondering if you know how I can obtain detailed information about this problem. I would like to find out more about how the telcos are being overwhelmed by internet callers staying on line in as much technical detail as possible. For example, how does it affect the equipement? Does it clog the digital pipe going from the local CO onto the backbone, or is the problem limited to tying up equipment in the CO? I think that eventually something could be worked out which is not quite as drastic as some scenarios which are being talked about now. I get the idea that the telcos are mostly concerned with the fact that their rate structures are set up for voice call duty cycles, while modems users are staying on the system much longer than that. Once they find a way to gain additional revenue from the modem calls they seem to be happy. This may be because then they have the revenue to support more equipment to support longer calls, etc., but who knows? I have always wondered why the telcos have not promoted purely digital telecommunications more. That would allow them to measure useage of the system and would also allow them to control data flow much better, so that connections to the CO would only appear active when data was actually moving, etc. I guess they may be wondering that also..... It's all very interesting. I guess it is better to be scrambling to handle too much business than worrying about too little, though... Larry

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