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Technology Stocks : LAST MILE TECHNOLOGIES - Let's Discuss Them Here -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (5565)	10/17/1999 10:34:00 AM
From: MikeM54321	Read Replies (3) \| Respond to of 12823

Re: SBC's DSL Spending Plans Ken, Here's another article on the same story. BUT...read my next posting about a possible problem with the billion $$ spending plans of the incumbents. MikeM(From Florida) __________________________ SBC to outline $2.5 billion broadband plans Oct 16 --SBC Communications, the local phone company for the Southwest and Midwest, plans to spend billions of dollars more to bring robust Internet access to its customers sooner, according to an industry report. The company, which just completed its $73 billion acquisition of rival baby Bell Ameritech, is expected to announce on Monday that it will invest up to $2.5 billion more in upgrading its local phone networks over the next three years, the investment firm Goldman Sachs & Co. said in a report to its customers. SBC had previously planned to spend about $1 billion per year on deploying more robust equipment for Internet services, according to past news releases. The San Antonio-based company declined to comment on the subject of a "major" press conference scheduled for Monday. The main motivation behind SBC's accelerated spending, of course, is competition. Although dialing up by phone is still the primary means by which most people access the Internet at home, cable television and wireless communications companies have been moving quickly to introduce faster, higher capacity Web service along with calling and TV service. AT&T for example, has committed more than $100 billion to buying cable TV systems and upgrading them for those purposes. Rival technology In response, phone companies have been rushing to deploy a technology called DSL, or digital subscriber line, that enables regular copper-phone lines to carry much more data at far greater speeds. That increased capacity is becoming vital with the increasingly elaborate graphics and capabilities of many Web sites. But because a DSL signal can't travel more than a few miles without fading, telephone companies like SBC will need to spend billions to dig up old copper cables and install fiber optic lines in every neighborhood they hope to introduce the service. By contrast with dial-up service, DSL is a live, continuous link to the Internet, enabling users to starting surfing with a single mouse click. It usually features speeds at least five times faster than a dial-up connection through a 56k modem. SBC plans to provide DSL speeds 20-to-30 times faster to all its customers over the next three years, Goldman Sachs analyst Frank J. Governali wrote in the report. SBC provides local phone service in most of the Southwest, Midwest and California with 59 million access lines.