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Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: stewart kagel who wrote (29626)	8/19/1999 7:38:00 PM
From: Vendit™	Respond to of 41369

I was just reading the same on the CSCO thread; Something of interest: DSL modems gain momentum While cable modem technology currently is cheaper and more readily available than digital subscriber lines, a recent report indicates that DSL is working its way up to become the world's high-speed Internet connection of choice. According to a recent report released by Cahners In-Stat Group, worldwide ADSL (asymmetric DSL) modem shipments grew 59 percent sequentially in the second quarter of 1999. By the end of the year, modem shipments are expected to exceed 1 million. Currently, third-party vendors lead sales for DSL modems. In the second quarter, Alcatel led the market in ADSL modems shipped, with a worldwide share of 33 percent; Cisco Systems Inc. ranked second with 18.7 percent; and Orckit Communications Ltd. was third with 13.7 percent. But traditional PC retail vendors are expected to get into the market as well. PC giants such as Compaq Computer Corp. and Dell Computer Corp. already have voiced plans to incorporate DSL modems in future products. The cable modem market is growing too, though. In-Stat predicts the number of worldwide cable modems shipped in 1999 will surpass 2.6 million, still a considerable lead on ADSL. Cahners In-Stat Group, of Newton, Mass., can be reached at www.cahnersinstat.com. Message 11011554

To: stewart kagel who wrote (29626)	8/19/1999 10:11:00 PM
From: Tecinvestor	Read Replies (2) \| Respond to of 41369

Stewart, I would agree that DSL is perhaps as good or better than cable modem and, therefore, the paranoia over AOL's ability to strike an arrangement with AT&T is overblown. I currently have "one way" cable modem in NYC, which is all that is presently offered to me in my area. This means I have to use an analog modem in addition to a cable modem to connect to the internet, which involves the tying up of a phone line. The cost is $39.95/month. The download speed is up to 1.25 megabytes/sec. and the upload speed is up to 33.6 kilobytes/sec. At some unidentified future date my cable modem service provider will upgrade me to "two way" cable modem, which does not require an analog modem or a phone line. The cost will be the same. The download speed is up to 1.25 megabytes/sec. and the upload speed is up to 600-700 kilobytes/sec. Bell Atlantic recently started offering DSL in my area. There are three programs available: 1. For $49.95/month you can have download speeds of up to 640 kilobytes/sec. and upload speeds of up to 90 kilobytes/sec. 2. For $99.95/month you can have download speeds of up to 1.6 megabytes/sec. and upload speeds of up to 90 kilobytes/sec. 3. For $189.95/month you can have download speeds of up to 7.1 megabytes/sec. and upload speeds of up to 680 kilobytes/sec. DSL does not require you to tie up a phone line. Rather, the DSL line is shared in such a way that you can carry on voice communications and DSL at the same time. There are no line charges (such as connection chares or time charges) with DSL. Theoretically, you are always on line. From what I've heard DSL is more secure than cable. I'm in the process of giving up cable modem and moving over to level 2 DSL. Personally, I like the idea of download speeds of up to 1.6 megabytes/sec. and the fact that I don't have to tie up a phone line or pay connection or time charges. I'm more interested in download speeds and do not care so much about upload speeds since most of my activity on the internet involves downloading rather than sending information. Granted, not everyone will be willing to pay $99.95/month (or $189.95/month for a rocket), but I think that many individuals, and a large number of businesses, will be willing to pay that fee, given the speed and security DSL offers over cable. The bottom line is that the concern over AOL forming an alliance with AT&T so that AOL will have the benefit of cable modem is unwarranted. AT&T can only offer AOL an alternative, and I'm not convinced that alternative is better that DSL. I'm waiting to see whether the cable modem people will be able to match DSL's download speeds of up to 1.6 megabytes/sec. or up to 7.1 megabytes/sec., and if so, at what price. Hope this helps clarify the issue.