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Technology Stocks : PairGain Technologies

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To: Daniel G. DeBusschere who wrote (27740)12/23/1998 1:31:00 PM
From: Rainmaker  Read Replies (1) of 36349
 
My two copper Lincolns...

ADSL pricing is based on how fast you want service - 1.5 Mbps to 50 Mbps. Being rate-adaptive (scalable), one can purchase the program that best fits their need. The average home user will likely not need more than 256k. GTE and several RBOCs are pricing this around $30 - $50 per month. T1 speeds will cost most businesses around $400 - $500 per month. This is less than half of what current T1 pricing is, and the primary reason why RBOCs are not rushing to the doors to deploy since this will erode their earnings from this lucrative business. CLECs, ILECs, et. al. who are beginning to build their networks have a clear advantage by starting with ADSL. This will be their focus. Accordingly, that is why PAIR has positioned themselves to deal more with this later group than the RBOCS. Finally, since ADSL is an "advanced" network solution, data delivery is the primary focus; voice will be "free". Look at Sprint, they are beginning to offer unlimited long-distance service on weekends for $25/month.
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