To: Moonray who wrote (19250 ) 8/18/1999 12:29:00 PM From: Scrapps Read Replies (3) | Respond to of 22053
Business Applications, Not Consumer Demand, To Drive Growth of DSL Deployments But regulatory and interoperability issues are blocking progress; "A real can of worms," says author of new IEC report on the future of digital subscriber line technologies CHICAGO--(BUSINESS WIRE)--Aug. 18, 1999-- An all-too-familiar bugaboo--regulatory issues--has jumped into the path of digital subscriber line (DSL) deployments says a leading telecommunications industry researcher. Judith Hellerstein, president of Washington, D.C.-based Hellerstein & Associates and author of a new International Engineering Consortium (IEC) research report entitled The Future of Digital Subscriber Line Technologies: Business Drivers, Strategies, and Markets, theorizes that DSL would be much more widely deployed at this juncture if the regulatory climate was clearer. One of the key issues concerns line sharing. Without it, says Hellerstein, customers requesting DSL service are forced to purchase a second line for their data transmissions, driving up costs and ultimately making it harder for the CLECs to compete with the incumbents. ''It's hard to say whether the government will mandate line sharing,'' explains Hellerstein. ''What it has said is that if there is even one incumbent that is successfully offering line sharing, then there's no reason why the other companies can't do it. And there is one ILEC--PAC Bell--that is doing it. This has opened a regulatory can of worms.'' Another issue concerns what Hellerstein describes as the ''control over the bottleneck.'' ''There have been a lot of problems,'' she explains. ''The business market has been slowed because of the difficulty of co-locating in the central offices. The ILECs own the central offices; CLECs need access to the DSLAMs and the copper wires that are attached to it. ''Even though laws are in place that allow CLECs to go into the central office, place equipment there and attach themselves to the local loop, the ILECs have been challenging them on this, which is delaying the whole process.'' The good news, according to Hellerstein, is that the Supreme Court has affirmed the Federal Communications Commission's authority on such regulatory issues. ''There is a light at the end of the tunnel ... the can of worms is almost empty,'' she says. ''In about 18 months we should see an interoperability standard and a consensus on how to deploy the technology.'' And seemingly not a moment too soon, as Hellerstein reports that businesses of all sizes and types are turning to DSL as the preferred means of providing the fast-access services their employees require. ''DSL offers the same productivity of a T1 line, at less than half the cost,'' she explains. ''The technology is also a lot cheaper than an ISDN line. Where $150 a month for faster speed might be out of the ballpark for a residential user, it's well within the realm for a business user. ''The bottom line is that businesses are much more willing to pay for customer service and for a guaranteed level of service. This is one of the big reasons why business demand for DSL services will eventually outstrip consumer demand.'' While it seems crystal clear that the demand for DSL services will grow at a rapid pace over the next several years, what is significantly less certain is whether DSL deployments will be able to keep pace with this demand. One of the biggest reasons for this, according to Hellerstein, is a lack of consensus among service providers concerning interoperability of the various DSL technologies. ''One of the issues is that technology is developing too fast for standards bodies to keep up,'' says Hellerstein. ''The data CLECs are rushing DSL technologies to market because they see this as a great business opportunity. The RBOCs and other ILECs are responding to this in a big way, because they don't want to be left behind and see the whole market go to the data CLECs. What comes into play is something I call the 'first mover advantage'--whoever gets there first gets the toe-hold.'' These issues and more are addressed in the IEC's The Future of Digital Subscriber Line Technologies: Business Drivers, Strategies, and Markets research report, available from IEC Publications. Analyzing one of today's most important topics to the telecom and information industries, The Future of DSL provides an overview of DSL deployment and explores the forces driving the rapid growth of broadband and high-speed access in homes and businesses. More information on the Future of Digital Subscriber Line Technologies: Business Drivers, Strategies, and Markets research report can be obtained by contacting IEC Publications (312-559-3730; publications@iec.org) or by visiting www.iec.org. -------------------------------------------------------------------------------- Contact: International Engineering Consortium Glenn Bischoff, 312/559-4636 gbischoff@iec.org -----------------------------------------biz.yahoo.com