AT&T Lays Out TCI Upgrade Plan
[[All, Is T on the right track here?
What are the odds they will introduce DSL into the
last mile, as well?
@Work already has, independent of this initiative.
Frank C.]]
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July 6, 1998
In an effort to deflect criticism over its purchase of
TeleCommunications Inc., AT&T Corp. last week
outlined plans to upgrade the cable TV network to offer
two- way voice and data communications services.
The TCI network upgrade will take place in three stages.
In the first phase, AT &T will add optical receivers to
each of TCI's 5,000 cable system " head ends," or
distribution points, and extend the fiber-optic cables in
the network closer to subscriber sites.
That upgrade, which will take more than two years to
complete, will also bring the first generation of digital
set-top boxes to users, according to AT&T officials in
Basking Ridge, N.J.
Slated for the second phase are the installation of cable
modems, the addition of network interface units at
subscribers' homes and deployment of proxy servers in
TCI's network centers to connect users' PCs with the TCI
@Home cable modem service. Installation of interfaces
between the TCI network and the public telephone
network as well as integration with local data switches
will also be completed in the second phase.
The second phase will bring the combination of
conventional telephone service and high-speed Internet
access.
The final phase, due to start before the end of 2000, will
include the deployment of advanced digital set-top
boxes that eliminate the need for separate cable modems
and telephones and will add routers to network head
ends to channel packetized telephony traffic to AT&T's
data network.
As a result, customers will get access to multiple voice
services on a single wire and "always on" Internet
services at speeds of up to 10M bps, officials said.
AT&T disclosed its upgrade plans to mollify investors
and users concerned that the communications giant's
$48 billion purchase of TCI, based in Englewood, Colo.,
is too costly and that the expense of upgrading TCI's
coaxial-based one- way video network will drain AT&T
resources.
The upgrade will cost an estimated $1.8 billion, although
about $500 million of that will be paid by TCI before the
merger closes, officials said.
<<PC Week -- 07-06-98>>
[Copyright 1998, Ziff W |
