<This would ordinarily make sense, but I recall some flack over this recently, and I think that ATHM's posture (as an extension of T's, or vice versa) towards two-way LAN-extension services will probably show up on their published use policy guidelines as a no-no. Any thoughts on this? >
Frank, my thinking was simply that looking at the subscriber base of MediaOne and saying x number of people divided by y purchase price gives you a idea of valuation on the deal, but I believe the subscriber base is open to large growth as the range of service T is proposing will win back many customers who switched off cable to DSS and there will be a large number of customers wanting internet/telecom service who are not traditional TV customers.
So, your question is will the Internet user, especially a SOHO or even larger business have too great a bandwidth demand for the cable based network. I don't know. I would think it might be very true in the short term, but in the long term the whole viability of this plan is reliant on having a very powerful 2 way network.
I think the upstream link of HFC systems will be enhanced greatly by equipment that is just now being installed. There are Metro DWDM that are especially designed to be in the field sending 8 waves of light back to the head end. The infrastructure of these systems is in great need of build out and that will be a major focus of spending for the next several years. It will be done market by market and it will have to be done in stages. Clearly, T is not there today, but we are all buying the stock on the idea that it will happen in the next several years and this combination of services will be very compelling.
So, yes I believe high speed internet access will be presented to business and that it will start with SOHO and work up.
Lest we forget, T also has a great product of wireless internet service coming down the road to their PCS phone customers. This again is also very interesting.
Regards, Mark
May 31, 1999, Issue: 1162
Section: Communications
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Wireless data transfers get a boost
Mark LaPedus
Silicon Valley- Two cell-phone chip rivals, DSP Communications Inc. (DSPC) and Qualcomm Inc., are taking different approaches to increase the speed of wireless data transfers: The companies have separately announced products that enable CDMA handsets to access the Internet, e-mail, and related services over higher-speed wireless networks.
Today, while wireless data services are expensive and thus prohibitive for most users, data-transfer rates for wireless handsets range from a mere 9.6 to 14.4 Kbits/s.
The next-generation wireless standard, called third-generation (3G), aims to boost data rates initially to 384 Kbits/s, and later to 2 Mbits/s. 3G also promises to unify the various digital cellular standards under one umbrella.
At present, two 3G technologies exist: cdma2000 and Wideband-CDMA (W-CDMA). Qualcomm is leading the charge in the cdma2000 camp, while Japan's DoCoMo and others are pushing W-CDMA. DSPC, meanwhile, does not endorse one technology over the other; in theory, its chips should support both cdma2000 and W-CDMA.
Hoping to bridge the gap between today's wireless data services and 3G, San Diego-based Qualcomm has begun shipping its new high-speed packet data (HSPD) software products to CDMA wireless carriers in Japan and Korea.
The HSPD software enables CDMA handsets to receive wireless data at speeds ranging from 64 to 86.4 Kbits/s, according to Johan Lodenius, vice president of marketing for Qualcomm's CDMA Technologies Division, the semiconductor and software arm of the cellular-communications giant.
The HSPD software works in conjunction with handsets built around Qualcomm's CDMA chipset, the MSM3000, Lodenius said.
Not to be outdone, Cupertino, Calif.-based DSPC has announced the D5431, a CDMA chipset designed to support wireless data-transfer rates of up to 115 Kbits/s. "The biggest demand for wireless data is in Japan and Korea now-the U.S. is a little bit behind," said Arnon Kohavi, senior vice president of strategic relations at DSPC.
The new D5431, based on an ARM7 RISC chip core, features advanced voice-recognition capabilities and acoustic echo-cancellation functions. It operates at 2.5 V and provides up to 350 hours of standby time. The chip will begin sampling this quarter, with production slated for the fourth quarter, Kohavi said.
In the face of competing products from LSI Logic, PrairieComm, and VLSI Technology, DSPC and Qualcomm continue to gain momentum in the CDMA-chipset business. In fact, they are the only two CDMA-chipset vendors currently shipping in volume; the other vendors are struggling to deliver their products, sources said.
Samsung, Sony, and other CDMA-handset OEMs have announced aggressive plans to build their own chipsets, thereby lessening their dependence on Qualcomm, their key supplier and handset competitor.
But Qualcomm isn't losing any market share, according to Lodenius. "If anything, we're gaining market share," he said. "Many companies are trying to develop their own chipsets, but they have generally failed. I don't think our competitors can keep up with us in terms of our chipset technology."
Wireless data services are expected to become a big business in the next few years: Allied Business Intelligence Inc., Oyster Bay, N.Y., projects growth from 25.3 million worldwide subscribers in 2000 to 88.6 million by 2006. |
