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Technology Stocks : Ascend Communications (ASND)
ASND 210.50+0.5%Nov 21 9:30 AM EST

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To: Mighty Mizzou who wrote (56378)10/22/1998 1:55:00 PM
From: Mighty Mizzou  Read Replies (3) of 61433
 
OT - Cable Modem Problems

Cable modem users find snags

Some early adopters of cable modems, the new superfast
Internet connections, are getting hit with service problems and,
perhaps soon, higher rates.

Companies are considering rate hikes for subscribers who
stay on line for long periods. But some customers complain
they often get busy signals when they try to log onto the Web.
Once on, they say they are frequently disconnected.

The targets of consumer frustration are the two national
providers of Internet service for cable companies - Time
Warner's Road Runner and @Home Network, whose partners
include Cox, Comcast and Tele-Communications Inc.

Both providers downplay reports of problems with the
services, which offer Internet connections at speeds up to 100
times that of regular phone modems. But reports of glitches as
cable modems roll out to select markets is a blot on the image
of a technology sometimes touted for its superiority over
high-speed phone lines.

Some of the more than 250,000 U.S. customers that @Home
and Road Runner now serve are livid. They pay $40 and up for
monthly service.

Patrick Moon, 23, of Fortuna, Calif., says his cable modem
provided by Cox@Home frequently locks up, stops
downloading during transmissions and redials even after a
connection is made. "It's a major frustration," Moon says.

Comcast@Home user Nick Griffin, 47, of Towson, Md., says
his service drops out "almost daily.''

Michael Beeler, 47, of Columbus, Ohio, had his Road Runner
service disconnected last month after several run-ins with
customer service.

@Home Network, which has 126,000 customers, says
problems with its service are rare. "We have technological
problems from time to time, but none are systematic," says
@Home's Dean Gilbert.

But executives at Cox, which offers @Home under its own
brand, admit there are problems with its cable operations and
@Home's service. TCI and Comcast say they aren't
experiencing such problems.

"We're offering a new product. You run into bumps in the road,"
says Chuck McElroy, Cox@Home's vice president of new
service support.

Road Runner's Stephen Van Beaver, says his company is
retraining its technicians and hiring. It has more than 120,000
customers.

"Things are still in progress. But we're five times better than
before," he says.

Part of customer frustration with cable modems - digital boxes
that attach to the back of PCs and deliver TV-like audio and
video - is that the service isn't cheap. Companies charge $40
and up for the high-speed service. And the cost could go
higher. McElroy says he expects a hike to come next year.

Despite the drawbacks, most users agree the speedy benefits
of cable modems outweigh the negatives. "Nothing comes
close to these when they're working perfectly," says
Cox@Home customer Adam Ringler, 43, of Vista, Calif.
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