=Winstar Interview-2: As Reliable As Fiber Optics, Co. Says
Not everyone, of course, is convinced of the virtues of the
point-to-multipoint system. As with any new technology, analysts point out, there is an element of risk: In particular, some have wondered whether Winstar's antenna-based system could be adversely affected by weather in a way that underground fiber optics would not.
Others say that Winstar may be overestimating the cost savings this
technology will deliver.
"The problem with point-to-multipoint has been the cost of access to
individual buildings themselves - not the technology - and those costs can be extremely prohibitive," said Craig Ellis, a portfolio manager with Orbitex Management Inc.
But Winstar officials maintain that the point-to-multipoint system has
99.999% reliability, on par with that of fiber optic systems.
As for costs, officials said that the new system will allow Winstar to
service 50 buildings for around $250,000 - $350,000 less than it would spend to hook up that number of sites under the existing point-to-point system, which Winstar employs in 27 markets.
Both systems offer telecommunications and data services through wireless technology. But while point-to-point requires a set of antennas for each building, point-to-multipoint allows Winstar to serve multiple buildings from a single hub.
Winstar, which has borrowed more than $1 billion in the junk bond market, also said it is fully financed to complete the roll-out of the
point-to-multipoint network.
-Craig Karmen / DJNews |
