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Technology Stocks : AT&T
T 25.61-0.5%Nov 14 9:30 AM EST

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To: Ernie Kelley who wrote (1486)6/27/1998 3:33:00 PM
From: Ian@SI  Read Replies (1) of 4298
 
Ernie,

With the AT&T TCI merger T is saying that they will be able to bypass the RBOC's by offering local phone service over TCI's cable.

I believe they're saying they can offer a variety of services including voice, video, home security, and even ordering Viagra when the time comes. ;-) As I understand it, this is a first step in the transformation from separate voice (switched) and Data (non-switched) networks, to a universal digital network. i.e. - achieving the hype of ISDN without the cost and installation impossibilities.

What type of box, at what cost, will allow them to offer POTS over cable?

I don't know, but I would guess that it will ultimately be ATM capable, all digital and an evolution from current SetTop boxes.

Where will the -48 come from, if its locally generated then the feature of the phone working when the power is down is lost ? I would think that is unacceptable to many. A local battery for each residence would be very expensive.

Beyond my knowledge here, but again, in an all digital world including the terminals, -48V DC is not required to signal an offhook condition. Any SS7 experts out there? Digital sets already exist in both the PBX and Centrex worlds. Do they still use -48V or is this an analog anachronism about to die its well deserved death?

I already own several phones which are unusable should there be a power failure In fact, I only have one which would retain full function during a power failure. I see no difficulty in paying much less than $200 Cdn to buy a BackUPS device from APC which will protect the settop box and a telephone in case of power failure.

Who would pay to install and maintain the local equipment?

The customer always pay for every service or product offered by a company unless, of course, that company decides (consciously or otherwise) to lose x% on every $ of sales. How these services get packaged / invoiced has long been a basis of competition. ... rather than any differentiation in the service or product itself.

Has this ever been done on a commercially viable, wide scale install?
Any comments on any of the above would be appreciated.


To my knowledge, no. In part, technology that made it economically or technically feasible didn't exist. It's now technically feasible. As the volume increases it will become economically feasible. Those that do it right first will get market share and become very difficult to displace.

Ernie, This is far from a sure thing. I'm willing to take the risk with my Dow Dogs component.

FWIW,
Ian.
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