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Technology Stocks : Ascend Communications (ASND)

ASND 196.81

-4.9%

3:59 PM EST

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To: STUART ARTHUR who wrote (1427)	12/18/1996 9:45:00 PM
From: Dee Jay	of 61433

the best way to reduce the traffic jams is to bypass telco switches; that will eliminate the need to switch data traffic at the same time voice is being switched. The principal overload stems from the fact that phone calls average perhaps 3 minutes in duration but Net access can be for hours. The latest wrinkle is that AOL users, formerly billed in hourly increments besides their basic rates (which allowed for X number of hours usage), now can stay on the net as long as they wish because of the flat rate pricing AOL adopted. They're Johnny-Come-Latelies on that since ISPs have offered unlimited service for quite a while but AOL also represents a huge lump of customers suddenly freed from time constraints. Add available software that allows the connection to remain "live" even when AOL or an ISP wishes to break the link after a certain amount of non-usage, and you now see the phone system as a python that just swallowed a Holstein - big lump in throat! Now comes Ascend with hardware that allows for a complete bypass of the switches. Please refer to the PR releases from Ascend issued 12/9 (re the ISND/DSL products developed with MFS) and the one dated 12/11 re The OnRamp (an ISP) that puts many of its servers right in the telcos offices, as well as having their own POPs. It's building its own network for the purpose of improving connection speed and line availability. Check out ascend.com and aslo press100.html. Getting the Internet access traffic off the voice-centric system and both areas improve from the reduced bulge in traffic. Dee Jay

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