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Technology Stocks : Covad Communications - COVD -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (3461)	2/7/2001 11:16:45 AM
From: Steve	Respond to of 10485

ISDN was never priced correctly and didn't deliver the bandwidth to justify the price nor was it ever viewed as a replacement for T1 or T3 leased lines. Plus there were no competitive offerings to drive the ILECs to deliver it. So, in the case of ISDN, consumers never demanded it because it was never priced appropriately. It was offered at a time when the internet was usable via a dial up connection and 56kbps modems were being phased in and were providing enough extra speed to satisfy most internet users. ISDN was never viewed by the ILECs as an alternative to T1 or T3 services it was viewed as a minor new service for certain consumers and small businesses who could not afford the more expensive services. The reason it was not adopted by its target market is that the ILECs were never willing to price to capture latent demand. What really killed ISDN was the 1996 Telcom act which created the DSL market and took the ILECs by surprise. Now they had viable competition to their business customer cash cows.