[DIY] Customer-Driven Installation and Price Reductions Seen as the Keys to Mass XDSL Deployment
Business issues affecting the widespread rollout of digital subscriber line service are among the topics to be covered at next month's 1999 XDSL ComForum in Chicago
CHICAGO--(BUSINESS WIRE)--July 6, 1999-- The hard reality facing regional Bell operating companies (RBOCs) looking to implement digital subscriber line (DSL) technologies on a mass-market basis is a shortage of installers relative to the consumer demand for high-bandwidth services.
``We're averaging 500 sales (of DSL services) a day,' says Joseph Zell, president, EEnterprise Networking Services, U S WEST. ``When you think about 500 sales a day, there aren't enough installers in the world to do it.'
The answer, according to Zell--who is chairing a plenary session entitled ``Making DSL Happen: Service Provider Perspectives' at the International Engineering Consortium's 1999 XDSL ComForum to be held in Chicago in July--is to get consumers to install the service themselves.
``We've done more than 40,000 subscriptions already, and 90 percent of those did their own installation, without a truck roll,' Zell explains. ``We've been somewhat lucky in that the early market has consisted of a lot of early adopters who have been willing to do this.'
The fear many consumers have, according to Zell, is that, by removing the lid of their computers and tinkering with what's inside, they are going to damage something or, worse, void the warranty. To help customers get past their fears, U S WEST offers a financial incentive and a consumer-friendly installation package to every subscriber interested in opting for DSL.
``They get a user's guide, which has been tested, literally down to the word, in focus groups where we bring in completely unassuming non-technical consumers and give them a certain amount of time to try and do an installation,' says Zell. ``We also give them a videotape, which takes a lot of the fear out of it.'
While it has been a relatively easy task to convince consumers that executing an installation is something they can--and want--to do, Zell believes it is imperative that RBOCs come up with a system that is less complex, and easier, to install.
``For DSL to become a mass-market success, it has to be something where you can drop ship the modem to the customer, they can plug it in, install a couple of filters, and run with it,' Zell explains. ``Right now, the hardest part is the installation of the network interface card (NIC).
``This is necessary because the splitter-less system we use requires the PC to have a compatible ethernet jack. Unfortunately, most home PCs aren't equipped with these jacks. So, to get DSL service, consumers have had to pop open their PCs, put in a card, install the NIC software, and then install the modem.'
According to Zell, the answer to this challenge is to simply eliminate the need for a network interface card by going to a USB port on the modem, which can be plugged into a compatible USB port on the PC, something that most of today's units have. Zell predicts that this will happen as soon as the industry adopts the G.Lite standard developed by the International Telecommunications Union (ITU).
Once the RBOCs clear the installation hurdles, there is still the issue of pricing to consider, says Zell. ``If you want to make a mass market, selling something for 60 bucks a month is not going to get it done,' he explains. ``There aren't many people, unless they're working out of their homes, that can justify that kind of spending. Consequently, we recently lowered our price by roughly 20 percent--and saw a doubling of our sales.'
Zell's plenary session, ``Making DSL Happen: Service Provider Perspectives,' is just one of more than 20 comprehensive educational sessions examining the business and technology issues affecting mass deployment of DSL that will be presented at the 1999 XDSL ComForum. The ComForum will be held July 19-21, 1999 at Marriott's Lincolnshire Resort just north of Chicago. More information on the 1999 XDSL ComForum may be obtained by calling +1-312-559-4600 or by visiting www.iec.org.
The International Engineering Consortium, established in 1944, is a non-profit organization dedicated to catalyzing positive change in the information industry and its university communities. The Consortium provides high-quality educational opportunities for today's information industry professionals and conducts a variety of industry-university programs. The IEC also conducts research and provides publications addressing the major opportunities and challenges of the information age. Currently, more than 70 leading high-technology universities are affiliated with the Consortium.
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