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To: The Prophet who wrote (8)	11/12/1997 11:59:00 AM
From: IKM	Respond to of 11

Responding to the press release: ''We hope that by presenting this technology very early in the ITU discussions we can accelerate the standardization process,'' Halim said. ''A year or so from now we want to see a seamless transition from 56Kbps PCM modems to this next higher-speed technology.'' That means real competitive threat is two or so years away. The thing about xDSL is that it is always "within two years." It also offers cost benefits to the telephone companies since they can activate service simply by installing CDSL equipment in their central offices for those customers who choose to take the service. A high-speed asynchronous transfer mode (ATM) or frame relay data network will likely be used to tie the central offices together and to give Internet Service Providers access to CDSL customers. $$$$$$ There is significant cost involved. Also, since it's circuit switched, it ties up a port on the switch. If it's always on, the telcos have to invest heavily in upgrading switch capacity. With CDSL technology's 18,000-foot reach, it will be possible to accommodate subscribers even if they are at the edge of their phone company's service area. CDSL subscribers will be able to achieve up to 1Mbps downstream speeds and 128Kbps upstream speeds, depending on line conditions and length. That's one thing about xDSL generally, the telcos are finding they have to groom the lines, remove loading coils, and ensure a home run to the customer premise from the central office. The networks in place are more complex than that. Look at USW's xDSL offering. They are offering 56k service to fill in the holes in their swiss cheese until they can upgrade their plant. There doesn't seem to be any siver bullet for the telcos with twisted pair.