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To: Arthur Tang who wrote (844)	8/20/2001 12:17:09 PM
From: tech101	Read Replies (1) \| Respond to of 847

Technically, DSL is a struggling by using complex electronics to squeeze the last resources from the old telephone wires. It can barely go beyond 1 mbps and three miles. On the other hand, the cable can provide hundred channels, and one single channel can deliver up to 30 mbps cover much longer distance. So in terms of capacity alone, the telephone wire is no comparison to the coaxial cable.

To: Arthur Tang who wrote (844)	8/20/2001 8:19:27 PM
From: Clement	Respond to of 847

> However, the fact that Barron's lacked technical > understanding is obvious. DSL can broadcast TV media, > technically. I read the article and I'm curious if you can point to where the article states that DSL cannot broadcast TV media? Personally, I believe the primary problem in that aspect will have more to do with cost of content than capabilities. It's simple math -- the cost to produce your own content when you don't have content to begin with is very significant since it is largely a fixed cost business -- the costs to send it to each home are fairly small versus the cost to build up in the first place. And then you run into the first mover advantage that the cable companies already have if you decide on a gradual buildout. > local telcos have 99% penetration(wired and usable for > DSL), while cable has between 30-40% penetration Penetration is also a fairly moot point if they cannot fix the problems associated with "an often century-old copper-wire infrastructure to offer DSL". "Over the past hundred years, the Bell companies have used literally dozens of blends and grades of copper wires in their networks, which makes the "provisioning" of DSL service enormously difficult.... Currently only about half the U.S. homes with telephones have even been "qualified," or adjudged ready, by the telephone companies to receive DSL." In addition, Bellcos are more preoccupied with long distance -- it is after all, lower hanging fruit. The difficulties also include the fact that from an investment standpoint, that the Bells will be penalized more than the cable companies as they have traditionally paid very stable dividends -- so to withdraw their dividends will have consequences to their cost of capital. This is particularly problematic as it is currently especially difficult to raise money for Telecom and for investments that have a long tail payback. Barron's has typically been very reliable historically even for technical issues -- this can be seen by the amount of weight its opinions do have on the market.