Four More Years Until Net Access by Cable
Feb. 10, 1999 (COMTEX)
Using cable lines as Internet connections is
still a pipe dream for most consumers, and
AT&T expects it to stay that way a while.
"It will be four to five years before AT&T's
investments with the cable companies can
have their full effect on consumer choice,"
says C. Michael Armstrong, chair of AT&T.
AT&T is awaiting final regulatory approval of
its merger with cable giant
Telecommunications Inc. and recently
announced a joint-venture agreement with
Time Warner. Those two deals will give AT&T
cable access to nearly 40 percent of
American homes.
Rebuilding the cable network to
accommodate digital transmissions as well
as two-way communication capabilities,
which are necessary for high-speed Internet
access, dictates the timetable, Armstrong
says.
"Upgrading the lines from low capacity to
high capacity as well as implementing
telephony upgrades would call for four to five
years," Armstrong says.
But once those upgrades have been
completed, the way Internet service is viewed
will change dramatically, Armstrong adds.
"The cable box on your TV will not only let
you order pay-per-view movies, it will be a
virtual communications center," Armstrong
said. A home cable line will offer multiple
lines for voice and high-speed data, he said.
Baby Bells Clamor
In the interim, the most viable option for
consumers who want high-speed Internet
access is Digital Subscriber Line service,
which provides digital data connections over
existing phone lines.
And even though the Baby Bells and AT&T
are at each others' throats over long-distance
pricing and other issues, representatives of
the regional Bell companies said they are
happy that cable access to the Internet is on
the horizon.
"We would like them to be a competitive
threat," says Roy Neel, president of United
States Telephone Association, which
represents all the regional Bells as well as
other telephone companies. "It would show
that the marketplace is competitive."
If Internet access through cable lines is a hit,
the Baby Bells hope the Federal
Communications Commission will be forced
to relax regulations restricting their
involvement in supplying DSL and other
types of Internet access.
Currently, federal rules force local telephone
companies to give access to independent
Internet service providers and limit their own
entry into the lucrative business.
Efforts to relax those FCC rules is bitterly
opposed by independent ISPs, who say
Baby Bells will undercut their pricing and
service plans.
Neel said the Baby Bells are rolling out DSL
service as fast as possible.
"The demand for DSL service has increased
exponentially," Neel says. "It is in our
interests to get it out to the market."
Meanwhile, Armstrong says AT&T will keep
building its cable line network.
"We would like to get cable access up to 60
to 70 percent of our broadband access," he
said. |
