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Technology Stocks : George Gilder - Forbes ASAP

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To: D. Newberry who wrote (1529)5/16/1999 12:38:00 PM
From: Bill Fischofer  Read Replies (1) of 5853
 
Re: Shared bandwidth

This has to be one of the wider circulated myths surrounding cable. Here's the real story: The entire net is based on shared bandwidth. The only question is at what level do bottlenecks arise. Does anyone honestly believe that the average local telco switching office has sufficient bandwidth on premises to handle 1000 simultaneous DSL users? Just where does that "dedicated" DSL line terminate? The answer, obviously, is that all subscribers share bandwidth and whether that sharing takes place at a central office or is distributed throughout a cable loop is largely irrelevant. Both approaches must continually upgrade capacity as additional subscribers are added.

As someone who has been using cable modem service since August 1997, I can state that I have never observed congestion which appeared to be due to local loop problems. On the contrary, once one is using broadband the congestion upstream on the various backbones becomes even more noticeable.
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