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Technology Stocks : Voice-on-the-net (VON), VoIP, Internet (IP) Telephony

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To: Stephen B. Temple who wrote (1616)10/21/1998 10:28:00 PM
From: Stephen B. Temple  Read Replies (4) of 3178
 
OT> Internet access is getting cheaper

By Denise Pappalardo
Network World Fusion, 10/21/98

UUNET, an MCI WorldCom company, announced a new T-3 Internet access service that's about 25% less expensive than its current T-3 services.

UUNET's new ATM-based T-3 service lets users connect to UUNET's backbone via a dedicated ATM connection from MCI WorldCom's ATM network.

Today, UUNET customers that subscribe to UUNET's Tiered T-3 or Burstable T-3 service have a dedicated private line that connects them directly to an ISP's network.

The ATM-based T-3 service, while not as direct, is less expensive. It starts at $4,500 per month for 3M bit/sec connection; compared to UUNET's Tiered T-3 service which is $6,000 per month.

But with ATM comes its overhead, or cell tax. There is 15% to 20% more overhead with ATM, says Ralph Montfort, director of product marketing at UUNET.

So instead of actually getting a full 3M bit/sec, users will most likely get about 2.5M bit/sec, but save $1,500 per month, Montfort explains. For some users the cost benefit outweighs the cell tax, he adds.

The service is available now starting at $4,500 for 3M bit/sec to $13,500 for 15M bit/sec.


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