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Technology Stocks : Ascend Communications (ASND)
ASND 220.42+4.9%Dec 12 9:30 AM EST

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To: Dee Jay who wrote (1358)12/9/1996 4:12:00 AM
From: Dee Jay   of 61433
 
FLASH! ASND announces its DSL products, including IDSL.
Telechoice's article, datelined today, follows (with thanks to Danny Briere, et al):
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Check It Out: Ascend Enters DSL Market
MAX and TNT Platforms to Offer Analog, ISDN and DSL Access

December 9, 1996 -- Remote access vendors were bound to begin to feature DSL interfaces on their equipment; it's been a question of when and how they would do so. Ascend Communications announced their DSL strategy today, starting out with immediate availability of low rate (128 Kbps) IDSL (ISDN DSL) and first quarter availability of S-HDSL (Single Pair HDSL), CAP and DMT ADSL solutions. The announcement is significant in that Ascend is the first remote access vendor to announce the incorporation of DSL interfaces in existing platforms. TeleChoice expects Cisco, 3Com and US Robotics to follow Ascend's lead in the first quarter of 1997. Ascend's significant ISP installed base will no doubt look to the vendor for high speed DSL access solutions since they are familiar with the MAX and TNT platforms which will accomodate the new DSL line cards.

The Ascend MAX 4002 and 4004 will rely on Ascend's new eight-port IDSL line card which will sell for $3,000 ($375 a port). IDSL connections provide the same 128 Kbps of traditional ISDN BRI (basic rate interface) service but will do so over dry pair; eliminating the need for expensive ISDN-outfitted CO switches such as the 5ESS. IDSL is basically a mechanism to provision ISDN-like services over ordinary twisted pair. The advantage is that 128 Kbps service can be offered in areas where ISDN is unavailable or too expensive for full time use (IDSL, like most DSLs, is a nailed-up service). The other advantage to IDSL is that it can interoperate with any ISDN TA (Terminal Adapter) and will give service providers experience with the nailed-up nature of DSL.

While the prevalence of dry pair in North America remains uncertain, MFS has deemed the strategy worthy of an announcement. It will rollout IDSL and S-HDSL services in 200 of its POPs (Point of Presences) in 46 cities nationwide (see related story below). The obvious disadvantage to a dark copper strategy is that simultaneous voice communications cannot be supported (at least not in Ascend's case). But that doesn't appear to be a concern to Ascend who says its customers are clearly interested in the high-margin business data market (at least initially).

While the MAX platforms are limited to IDSL connections, the new TNT platform features a 155 Mbps packet bus and can easily accomodate multiple DSL connections. TNT will field IDSL connections in March and will provide CAP-ADSL connections and S-HDSL interfaces in February of 1997.

ADSL-CAP line cards will come in a 6 port versions that sells for $8,250 ($1,375 a port). Initial versions will run at 1.5 Mbps downstream/64 Kbps upstream at 18,000 feet and 6.14 Mbps downstream and 640 Kbps upstream at 12,000 feet. Customer premises equipment is dubbed the DSLPipe C and sells for $1,750. DSLPipe C is much like the vendors Pipeline family of products taht provides a single ethernet interface and limited bridging and routing functionality. These products rely on the Globespan chipset but are developed internally by Ascend.

The S-HDSL solution is referred to SDSL by Ascend (a sign that the DSL industry needs to get in line with its acronyms) and provides 768 Kbps data rates at 12,000 feet. The 16-port line card sells for $8,500 ($530 a port) and the CPE called DSL Pipe S costs $1,495. Ascend makes the point that this gear will sell for the same price it's ISDN-based Pipeline product cost when it was first released a couple of years ago; perhaps an indication that S-HDSL's prices could drop. Ascend's SDSL solution relies on 2B1Q line coding.

The price of Ascend's DMT line cards is TBD but it is rumored that the supplier of these DMT chips begins with the letter 'A', (gee, that only leaves 3 options!). These 4-port line cards and customer premises equipment called DSLPipe D will be available in the second quarter. DMT products will run at 1.54 Mbps downstream and 176 Kbps upstream at 18,000 feet and 6.14 Mbps upstream and 640 Kbps downstream at 12,000 feet.

A clear shortcoming in the Ascend solution is a central office ATM solution. While many small ISPs and CAPs will no doubt embrace the Ascend DSL solution, larger telcos will want a larger ATM-equipped system. Ascend's recent partnership with Alcatel is an answer to that desire and may even reflect a delay in Alcatel's DMT DSL offerings.

Ascend's biggest advantage may lie in the fact that it can accomodate all access technologies: from 14.4 Kbps land-line modems to ISDN, to 6 Mbps ADSL. While other DSL providers offer a DSL-only solution, Ascend provides multiple forms of access in a system that is well understood by many ISPs and CAPs.

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Dee Jay
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